UN Expects 50% Increase in Emissions-Project Requests This Year

Other News Materials 14 February 2009 05:55 (UTC +04:00)

The United Nations' emissions- trading market, the world's second-largest, expects a 50 percent increase in greenhouse-gas-reduction-project registrations this year, boosting the supply of tradable credits, Bloomberg reported.

Applications will likely jump to 1,000 from 666 last year, the Clean Development Mechanism Executive Board, regulator of the program, said in a report published yesterday on the Web site of the UN Framework Convention on Climate Change. Proposals for issuances of certified emissions-reduction credits are expected to jump by 55 percent to 800.

Companies have increased requests for credits as growing environmental awareness worldwide spurs tighter legislation. About 11,000 factories and power stations belong to the European Union carbon-dioxide system, the biggest emissions-trading market.

The budget for the UN market, which allows rich nations to invest in greenhouse-gas-cutting projects in poor nations, was boosted 30 percent this year to $28.5 million, the report said. The number of employees in the UNFCCC needed for the larger caseload will rise to 137 from 93, it added.

Prices in the EU program have plunged 72 percent to a record low from a two-year high in July on concerns that a recession will slash demand for credits.