Poland to Sign CO2 Deal with Spain and Ireland

25 October 2009 (Last Updated October 25th, 2009 18:30)

Poland is expected to sign a deal to sell a total €40m ($60m) of surplus greenhouse gas emission rights to Spain and Ireland, it has been announced. The deal would be the first such government-to-government deal under the Kyoto Protocol, Poland's environment minister said, reports Reute

Poland is expected to sign a deal to sell a total €40m ($60m) of surplus greenhouse gas emission rights to Spain and Ireland, it has been announced.

The deal would be the first such government-to-government deal under the Kyoto Protocol, Poland's environment minister said, reports Reuters.

Under the Kyoto Protocol, signatory nations that are below their emissions targets can sell their surpluses in the form of credits, called Assigned Amount Units (AAUs), to governments and companies that are short of their goals.

Poland is able to sell about 500 million tons in CO2 equivalent of AAUs over the 2008-2012 period of Kyoto's first phase and is also looking to sell them in Japan, Environment Minister Maciej Nowicki told Reuters.

The EBRD has set up a Multilateral Carbon Credit Fund to help governments seeking to trade such surplus credits via market schemes under the Kyoto Protocol.