Wednesday, August 15, 2007

London profits while Africa awaits Kyoto benefit

A great piece of reporting from Reuters

Huge profits made by London-based brokers who arrange emissions-cutting projects in developing countries contrast with little benefit for the world's poorest nations, company and United Nations data shows.

...Africa has seen just 21 out of a total of 751 CDM projects officially registered with the U.N. climate change secretariat.

...The World Bank's International Finance Corporation formally launches later this month an initiative called "Lighting the Bottom of the Pyramid," which aims to supply low-carbon lighting to some of the 500 million Africans who have no electricity access.

...In one of the biggest money-spinning projects yet, 10 investors including London-based Climate Change Capital and New York-based Natsource bought 129 million tonnes of carbon credits for 6.2 euros ($8.49) per tonne from two projects in China.

The price of such carbon credits for guaranteed delivery closed last week at some 16 euros per tonne, implying potential profits for these investors of well over 1 billion euros.