BASF backs 20 World Bank carbon emission reduction projects

14 June 2004 15:39  [Source: ICIS news]

LONDON (CNI)--German chemicals group BASF will participate in 20 emissions reduction projects that have been identified by the World Bank’s Community Development Carbon Fund (CDCF), a company spokesman told CNI on Monday.

 

The funding requirement for these projects, which are recognised as “Clean Development Mechanisms” (CDM) under the Kyoto Protocol, totalled $40m (Euro33m). BASF is contributing $2.5m.

 

At a joint press conference in Frankfurt, Germany today, BASFand the World Bank said one of the projects involved the reduction of carbon dioxide (CO2) emissions during electricity generation at Jeffreys Bay, South Africa. The scheme will cut emissions by 300 000 tonne/year through the use of wind and water power instead of fossil fuels.

 

The BASF spokesman said some of the 20 CDCF projects will begin next year. Others will be implemented over a period of more than 20 years, he added.

 

CDCF was established a year ago by the Italian, Canadian and Dutch governments and six non-governmental entities. In addition to BASF, they are the International Emissions Trading Association and four Japanese companies - Daiwa Securities SMBC, Idemitsu Kosan, Nippon Oil and Okinawa Electric.

 

Participation in CDCF allows companies to fulfil some of their carbon dioxide (CO2) emission reduction requirements via projects in developing countries. The participants receive certified greenhouse gas emissions rights that will be accepted in 2005 as part of the European Union (EU) emissions trading system.

 

Dirk Drechsel, who is responsible for co-ordinating greenhouse gas trading at BASF, said: “Participating in the fund is an excellent opportunity for BASF to acquaint itself with the complex mechanism of global greenhouse gas trading.”

 

Ernst Schwanhold, president of BASF’s environment, safety and energy competence centre, said of the CDCF: “These mechanisms are far better suited to reducing global emissions of greenhouse gases than the regionally limited emissions trading system in the EU.”

 

In 2003, BASF reduced its greenhouse gas emissions by 7.2% per tonne of sales product compared with the previous year.

 

During the same period, other emissions to air were decreased by 4%. Emissions to water were also reduced: heavy metals emissions by 10% and nitrogen emissions by 8.5%.

By: Russell Ong
+44 208 652 3214

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