Italy is to fund carbon reduction projects in Albania to exploit the country’s potential for CDM. Italy, which is struggling to meet its Kyoto target, has set aside a pot of €5 million ($6.9 million) to finance up to 30 per cent of the start-up costs of as many as four clean development mechanism (CDM) projects in return for carbon credits.
A joint commission set up by Italy and Albania will select the projects, and each scheme could receive a maximum of €1.5 million, an expert with the Italian environment ministry said.
The projects, if successful, will likely receive the bulk of the certified emission reductions after 2012, when the current period of the Kyoto protocol expires, said Christian Melis, an official with the Italian environment ministry.
The four projects could earn around 600,000 certified emission reductions per year, according to Point Carbon News calculations.
Melis said the primary aim of the programme is to help Italian and local companies gain experience in developing emission reduction projects.
“We never wanted to solve the Kyoto question from the Balkans,” he said.
In 2008, Italy emitted 541.5 million tonnes of CO2 equivalent (excluding emissions linked to land use change), 58.2 million tonnes above the country’s targeted Kyoto level.
Credits from the projects are unlikely to be issued in time to help the country meet its Kyoto target, although Italy could use them to help meet future targets should UN climate talks agree a successor pact to Kyoto.
“”We know the carbon reduction potential in this region is significant and the Balkan countries represent crucial partners for Italy,” Melis said.
Since 2006, the Italian government has helped four countries in the region tap into carbon finance.
Albania, Macedonia, Montenegro and Serbia received €400,000-600,000 each to identify CDM potential and help them form project design documents (PDD) and Albania is the only one to receive Italian help to fund project construction.
“If the results are positive, this experience could be replicated in other countries,” Melis said.
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