Carbon Trade Group Backs Call to Check Credits on Human Rights

The Carbon Markets and Investors Association, a global trade group, backed calls by an environmental lobby to refuse carbon credits to projects linked with human rights violations.

“CMIA strongly urges all those who have a role in the scrutiny” of applications for carbon credits “to continue their efforts to discover such abuses, and if proven, have the requests rejected from the United Nations approval processes,” Miles Austin, director of the London-based group, said in an e- mailed statement.

CDM Watch, a Brussels-based organization that monitors the so-called Clean Development Mechanism projects overseen by the UN, said in February a biogas project in Honduras was linked to human rights violations. The U.K. government gave Electricite de France SA’s EDF Trading authorization to buy the credits from the Honduran project in June 2009, according to CDM Watch. The project was backed by a $30 million loan from the World Bank, the group said in a statement on its website.

“We are currently evaluating our position with respect to this project,” Michele Reid, a London-based spokeswoman for EDF Trading, said today in an e-mail.

Companies that work with a project found to be linked to human rights violations and those that buy credits from them should “immediately terminate their commercial relationship,” Austin said.

To contact the reporter on this story: Catherine Airlie in London at cairlie@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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