Ineos AG may get 4.3 million tons of United Nations emission credits from a pollution-cutting project in South Korea under a compromise that allows the chemical maker to use a superseded rule for two years.
The Ulsan project participants would apply a new methodology to calculate emission reductions at the plant that destroys hydrofluorocarbon-23 “effective from the date on which the new methodology is adopted,” Ineos said in a letter dated Nov. 22. They said they’d use the older, more generous methodology until a replacement had been adopted.
The UN-overseen executive board approved the new methodology at the meeting ended Nov. 25. The board also approved Rolle, Switzerland-based Ineos’s project for its second crediting period, which started in January 2010 and will run through the end of 2016.
Under UN rules, the market’s regulator may only apply new methodologies to projects in between crediting periods. The Ulsan project had requested its second crediting period before the executive board decided to review the methodology, and was therefore entitled to apply the old methodology for the full seven years, according to CDM rules.
Ulsan was seeking 2.24 million tons a year of credits during its second period, according to UN documents. The project may get as many as 4.3 million tons in the 23 months through the end of this month, and about 792,000 tons a year after that under the new methodology.
Credits from HFC-23 cutting projects make up about 46 percent of all UN emissions credits issued. HFC-23 is a greenhouse gas about 12,000 times more potent than carbon-dioxide. Credits from this project type may be used in the European Union’s emissions trading system until May 2013.