UN nod for carbontrading projects

Published on August 7, 2007

He said the United Nations' Framework Convention on Climate Change had approved and registered the three projects. All are biomass plants and are run by the Mitr Phol Group, AT Biopower and Khon Kaen Sugar Industry.

The approval allows Thailand to trade carbon credits internationally. The rate of car¬bon credit trading on the world market is US$7 (Bt237) a tonne.

The energy agency expects carbon credits to increase national income.

To have projects approved they must be submitted to the Natural Resources and Environment Ministry. They will then be considered by the Cabinet and sent to the UN convention.

To date, 45 companies have submitted cleandevelopment proposals.

Carbon trading is a key mar¬ket mechanism for combating global warming under the Kyoto Protocol's cleandevel¬opment mechanism. It places an economic value on carbon dioxide, a major greenhouse gas, then creates a market to buy and sell the right to emit greenhouse gases. Developed countries look to developing countries to buy rights to emit greenhouse gases.

Khon Kaen Sugar Industry's assistant vicepresident for business development, Chalus Chinthammit, said it started its biomass electric plant in December last year. It runs on sugar cane and is expected to generate 61,000 tonnes of carbon credits each year.

The plant produces 30 megawatts - 20 megawatts of which is sold to the Electricity Generating Authority of Thailand.

The company has been approved to trade credits for 10 years. After that it will need to submit another cleandevelopment project.

"We expect our project will reduce emissions and impact global warming by using alter¬native energy like electricity from sugar cane. It is enough for our plant," he said.