Wednesday, April 25, 2007

Gas With a Side of Carbon Credits

The New York Times reports that Russian energy company Gazprom plans to bundle carbon credits with gas and sell them.
Gazprom, the Russian energy giant, has made handsome profits selling natural gas to Europe.

Now the company is positioning itself to make even more money, this time from the effluents from all that gas it sells to Europe. Gazprom announced Tuesday that it is selling carbon dioxide emissions credits that companies in the
European Union need in order to burn Gazprom’s fuel.

The company is already testing the market for an innovative combination sale of fuel-and-emissions credits in countries that have undertaken to limit the release of gases that scientists say are warming the earth.

In 2005, the European Union, the major market for Gazprom, introduced a cap-and-trade scheme that allows polluters to buy credits that allow them to pollute and nonpolluters to sell pollution credits that they won’t use. That system is now being closely watched as Congress considers a similar mechanism in the United States.
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