Norway’s has contracted to buy an estimated 7.6 million CERs from five CDM projects in Brazil and South Africa, in a second tender held by the country in its effort to prevent the dismantling of GHG-cutting installations in developing nations.
Both South African projects abate N2O, while two of the Brazilian ones trap landfill gas and another converts SF6 to a less potent alternative, the Norwegian Ministry of Climate and Environment said in a joint release with the Nordic Environment Finance Corporation (NEFCO).
Several other projects including a number of Programmes of Activities (PoAs) – located mainly in sub-Saharan Africa and Asia – have also been short-listed for future credit purchases, the statement added.
Through its Norwegian Carbon Procurement Facility (NorCaP), NEFCO has now secured more than 26 million CERs from 15 projects out of its target to buy 30 million by 2020 from installations whose survival or continued emissions reductions depend on a higher carbon price.
CER prices are currently trading around €0.40, near their all-time lows, due to a dearth of international demand.
Norway had expected this tender, which closed last December, to result in the purchase of 15 million CERs, but it drew fewer interested projects and lower offered prices than the first tender in 2013, NEFCO said in February.
NEFCO on Thursday said its first tender, which closed in Jan. 2014, contracted an expected volume of 18.86 million units at an average price of €2.19 each.
Some 112 projects in 27 countries, accounting for 99.2 million credits, applied for the second tender, down from 232 projects in 35 nations in the first call.
The second tender attracted offers for an average €2.85 per CER, down from €3.92 offered in the first tender.
By Mike Szabo – email@example.com