The greenhouse gas market expands

Since 2005, the most polluting companies have been governed by the Emissions Trading System. This means that they have permits or rights to emit a certain amount of greenhouse gases. If they pass, they must buy more or risk being sanctioned. On the other hand, if they have excess rights because they have implemented measures that allow them to reduce their pollution levels, they can sell them.

“This market for buying and selling _CO2 emissions covers between 35% and 40% of the emissions produced in first world countries,” explains Ismael Romeo, from the company specialized in the sale of emission rights Sendeco2. What about the remaining %-65% , known as the diffuse sector? For this group of companies, there is no legal obligation.

Enterprises

The Emissions Trading System has been in force since 2005

An initiative of the Generalitat de Catalunya, with the help of Sendeco2, seeks to allow companies that are not obliged to offset their carbon dioxide emissions to do so. Within the framework of this action, last week the first greenhouse gas credits went on sale. Specifically, 4,256 tons of _CO2, which is equivalent to 4,256 credits or the emissions of 4,256 cars that travel 10,000 kilometers a year.

These credits come from emission reduction projects carried out by entities, associations, foundations and NGOs that carry out a social task in Catalonia, such as the Fundació Banc del Aliments, Ecosol economia solidària or the Fundació Sant Hospital de la Seu d’Urgell, among others. The actions consist of replacing diesel or propane boilers with biomass boilers or solar panels, improving the energy performance of buildings or replacing diesel vehicles with electric ones. The actions are certified by the Generalitat.

“The emissions saved thanks to these projects have been translated into emission rights that social entities now put up for sale to be bought by companies that voluntarily want to offset their carbon footprint,” explains Romeo. Sendeco2 is the company in charge of intermediating in the sale.

“Until now, if a company wanted to buy credits voluntarily and that the money went to local projects, it could not,” says Mercè Rius, general director of Qualitat Ambiental i Canvi Climàtic of the Generalitat. “It is the companies that asked to be able to offset their emissions in Catalonia,” says Iñaki Gili, head of Mitigation of the Catalan Office of Canvi Climàtic. According to the Departament de Territori i Sostenibilitat, it is a pioneering action in Europe.

Regulation

The price at which the rights issued by the Generalitat have come out, much lower than those of the market

The established price is 10 euros per right, which is what entities that can sell emission rights charge. “It is a price set from a survey of potential buying companies and based on what the rights were worth at the time. Price that, at present, revolves around 25 and 27 euros, “explains Gili.

The credits now put on sale correspond to actions carried out between 2016 and 2017. The general director of Qualitat Ambiental i Canvi Climàtic advances that there will be a new call at the end of this year or at the beginning of next year for social entities to carry out more projects to save CO emissions₂ and be able to put the new credits on sale in a few years.

Source: The Vanguard