Regulators of the United Nations carbon market issued about 2 million Certified Emission Reductions to a hydrofluorocarbon-23 reduction project of Zhejiang Juhua Co. in China, according to a UN website.
The credits can be used by more than 11,000 factories and power stations in Europe to comply with emissions limits and by other nations to meet greenhouse-gas targets under the Kyoto Protocol. HFC-23 is a waste gas with almost 12,000 times more global warming potential than carbon dioxide.
The EU proposed a ban last month on credits linked to HFC-23 and nitrous oxide from adipic acid production starting in 2013. The European Commission, the EU regulator, said projects related to those industrial gases may create “excessive” profits for investors and undermine the market’s integrity.
Representatives of EU governments are due to hold a first discussion on the proposal at a meeting today.