Rush to trade CO2 credits

Thailand-based companies are expected to come up with about 100 carbon-dioxide (CO2) reduction projects by the end of this year, Sirithan Pairote-boriboon, director of Thai Greenhouse Gas Organisation, said yesterday.

He told a seminar organised by the Thai Reporters' Association yesterday that about 30 schemes aimed at reducing CO2 by about two million tonnes have been certified by the agency. CO2 is a significant contributor to the global-warming phenomenon.

"At present, we're evaluating another 28 projects. By end of the year, we expect to certify a total of 100 schemes. Certified projects need further approval by the UN body on climate change before they can start trading the CO2 credits," Sirithan said.

Each of the projects is estimated to have a capacity to reduce CO2 by an equivalent of 10,000 to 200,000 tonnes.

Once approved by the UN Convention Framework on Climate Change under the Kyoto Protocol, each of the CO2 credits can be traded worldwide at US$7-$14 (Bt224-Bt449) a unit.

Though the Kyoto Protocol is near over, the Clean Development Mechanism (CDM) - in which CO2 credits are traded among countries - will remain intact, the seminar was told.

Thailand is among developing countries keen to reduce CO2 emissions as the cost of achieving it in the Kingdom is cheaper than in the more developed and industrialised nations.

Thai firms may propose projects for certification and approval by the UN body. Reduction of CO2 emissions will reduce the  greenhouse gas effect.

"Worldwide, a total of 1,338 projects are now registered under the CDM programme for CO2 trading, with India proposing the most projects. The world's market for CO2 credits is currently worth Bt75 billion," Sirithan said.

"While we've found that more firms here and abroad are interested, many still do not have the correct understanding ... partly because the number of consultant firms in this field is not enough."