CANADA HOSTS UN CLIMATE MEETING
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NEWS, OF THE WEEK CAPTURED Ineos Fluor aided Ulsan Chemical's HFC-23 reduction project in South Korea. BUSINESS CARBON EMISSIONS TRADING PICKS UP As U N conference gets under way, firms eye emissions profit potential Ε TOUGH TALK Dion speaks at opening of UN conference in Montreal. VEN AS NATIONS GATHER in Montreal to consider new curbs on global warming gases (see story below), chemical companies that emit such gases are maneuvering to do their share and also make a buck. Rhodia says the UN Framework Convention on Cli- mate Change Sec- retariat has regis- tered a greenhouse gas reduction proj- ect at its Onsan, South Korea, facili- ty that makes the nylon intermedi- ate adipic acid. Each ton of nitrous oxide produced as a by-product of the manufacturing process has a global warming potential equal to 310 tons of C0 2 . The carbon emissions receipts (CERs) earned in South Korea, along with credits Rhodia expects to obtain from a similar project at an adipic acid facility in Paulina, Brazil, will allow the firm to offer between 11 million and 13 million metric tons of CERs per year be- ginning in 2007 in countries that have signed the Kyoto protocol. The likely buyers are companies that cannot reduce emissions as easily as Rhodia can. The market to trade CERs is only now beginning to develop, so it is too early to say how and where Rhodia might trade the credits. Early trades in CERs have fetched between $11.80 and $23.60 per ton, according to the company. At those prices, Rhodia's CERs could garner between $150 million and $300 million annually, giving the financially beleaguered company a much-needed income stream. Separately, Ineos Fluor says it has agreed to sell 1 million CERs to Natsource Europe, a firm that trades in emissions credits. Ineos obtained the credits from a project with Ulsan Chemical in South Ko- rea to reduce hydrofluorocarbon- 23 generated as a by-product of making the refrigerant HFC-22. Ineos acted as a partner on the project and expects to obtain addi- tional credits for sale from a similar project with India's Gujarat Fluo- rochemicals.—MARC REISCH KYOTO PROTOCOL CANADA HOSTS UN CLIMATE MEETING Leaders call for strong action; U.S. continues to oppose emissions targets N EARLY 1 0 , 0 0 0 DELEGATES and observers arrived in Montreal on Nov. 28 to at- tend the largest United Nations conference on global climate change since the Kyoto protocol was negotiated in 1997 The 12-day meeting includes plans for approv- ing rules related to the protocol and talks about future reductions of greenhouse gas emissions. Canadian Environment Min- ister Stéphane Dion opened the meeting with a strong call for action. "Governments are acting decisively to fully implement the climate-change convention and are determined to meet their commit- ments under the Kyoto protocol," he said. "Let us set our sight on an effective, more inclusive, long-term international approach to climate change." Many delegates hope to be- gin discussions on future green- house gas reductions that might be needed after the Kyoto accord expires in December 2012. How- ever, "the U.S. is opposed to any such discussions" involving legally binding targets and timetables, said Harlan L. Watson, head of the U.S. delegation, during a press conference. Watson pointed out that the U.S., which has not ratified the Kyoto protocol, has committed to reducing its energy intensity—en- ergy used per unit of production— 18% by 2012, compared with the level in 1990. But according to a UN report, U.S. greenhouse gas emissions have increased 13% since 1990 in contrast to an overall 5-9% decline from the developed coun- tries that have ratified the Kyoto protocol. Some progress has already been made. On Nov. 30, delegates from the 34 developed countries that are party to the Kyoto protocol approved final rules for emissions trading and rules for allowing countries to count C0 2 absorbed by trees as emissions reductions. Adoption of these rules makes the Kyoto protocol fully operational. The most important decisions, however, including the imposition of sanctions against nations for breaching the protocol, are not likely to be reached before Dec. 7, when national environment min- isters arrive and high-level discus- sions begin.—BETTE HILEMAN 10 C&EN / DECEMBER 5, 2005 WWW.CEN-0NLINE.ORG
Transcript of CANADA HOSTS UN CLIMATE MEETING
NEWS, OF THE WEEK
CAPTURED Ineos Fluor aided Ulsan Chemical's HFC-23 reduction project in South Korea.
B U S I N E S S
CARBON EMISSIONS TRADING PICKS UP As UN conference gets under way, firms eye emissions profit potential
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TOUGH TALK Dion speaks at opening of UN conference in Montreal.
VEN AS NATIONS GATHER in Montreal to consider new curbs on global warming
gases (see story below), chemical companies that emit such gases are
maneuvering to do their share and also make a buck.
Rhodia says the U N Framework Convention on Climate Change Secretariat has registered a greenhouse gas reduction project at its Onsan, South Korea, facili
ty that makes the nylon intermediate adipic acid. Each ton of nitrous oxide produced as a by-product of the manufacturing process has a global warming potential equal to 310 tons of C0 2 .
The carbon emissions receipts (CERs) earned in South Korea, along with credits Rhodia expects to obtain from a similar project at an adipic acid facility in Paulina, Brazil, will allow the firm to offer between 11 million and 13 million metric tons of CERs per year beginning in 2007 in countries that have signed the Kyoto protocol. The likely buyers are companies
that cannot reduce emissions as easily as Rhodia can.
The market to trade CERs is only now beginning to develop, so it is too early to say how and where Rhodia might trade the credits. Early trades in CERs have fetched between $11.80 and $23.60 per ton, according to the company. At those prices, Rhodia's CERs could garner between $150 million and $300 million annually, giving the financially beleaguered company a much-needed income stream.
Separately, Ineos Fluor says it has agreed to sell 1 million CERs to Natsource Europe, a firm that trades in emissions credits. Ineos obtained the credits from a project with Ulsan Chemical in South Korea to reduce hydrofluorocarbon-23 generated as a by-product of making the refrigerant HFC-22. Ineos acted as a partner on the project and expects to obtain additional credits for sale from a similar project with India's Gujarat Fluo-rochemicals.—MARC REISCH
K Y O T O P R O T O C O L
CANADA HOSTS UN CLIMATE MEETING Leaders call for strong action; U.S. continues to oppose emissions targets
N EARLY 1 0 , 0 0 0 DELEGATES and observers arrived in Montreal on Nov. 28 to at
tend the largest United Nations conference on global climate change since the Kyoto protocol was negotiated in 1997 The 12-day meeting includes plans for approving rules related to the protocol and talks about future reductions of greenhouse gas emissions.
Canadian Environment Minister Stéphane Dion opened the meeting with a strong call for action. "Governments are acting decisively to fully implement the climate-change convention and are determined to meet their commit
ments under the Kyoto protocol," he said. "Let us set our sight on an effective, more inclusive, long-term international approach to climate change."
Many delegates hope to begin discussions on future greenhouse gas reductions that might be needed after the Kyoto accord expires in December 2012. However, "the U.S. is opposed to any such discussions" involving legally binding targets and timetables, said Harlan L. Watson, head of the U.S. delegation, during a press conference.
Watson pointed out that the U.S., which has not ratified the
Kyoto protocol, has committed to reducing its energy intensity—energy used per unit of production— 18% by 2012, compared with the level in 1990. But according to a U N report, U.S. greenhouse gas emissions have increased 13% since 1990 in contrast to an overall 5-9% decline from the developed countries that have ratified the Kyoto protocol.
Some progress has already been made. On Nov. 30, delegates from the 34 developed countries that are party to the Kyoto protocol approved final rules for emissions trading and rules for allowing countries to count C 0 2 absorbed by trees as emissions reductions. Adoption of these rules makes the Kyoto protocol fully operational.
The most important decisions, however, including the imposition of sanctions against nations for breaching the protocol, are not likely to be reached before Dec. 7, when national environment ministers arrive and high-level discussions begin.—BETTE HILEMAN
1 0 C & E N / D E C E M B E R 5, 2 0 0 5 W W W . C E N - 0 N L I N E . O R G
