Nov. 28 (Bloomberg) -- Slovakia approved the sale of most of its surplus United Nations carbon-dioxide permits to Spain as the government attempts to raise revenue to cut the country’s budget deficit.
A Cabinet meeting in Bratislava today authorized selling to Spain all of Slovakia’s spare Assigned Amount Unit representing up to 27 million tons of carbon dioxide equivalent, according to the government’s website. A second option would be selling to Spain permits covering 22 million tons of greenhouse gas emissions, with the rest going to Austria.
The statement didn’t specify the purchase price. Environment Minister Peter Ziga said on Nov. 7 the price will probably be less than 1 euro per ton, in line with the market level.
AAUs were distributed to nations based on the Kyoto Protocol, which set limits on greenhouse-gas emissions for the period 2008 to 2012. A global economic slowdown since 2008 caused industrial production to stagnate, boosting the supply of spare permits. Slovakia has surplus allowances worth about 27 million tons.
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