Spain's Kyoto plan hinges on buying carbon credits

[stephanie]

This article shows what this global warming shenanigans is all about........Extortion....Taking from one country and giving it to a another country....If you buy into all this, I hope you will appreciate being extorted....
China must be laughing thier asses off...

MADRID, Feb 8 (Reuters) - Spain is one of the countries that needs to invest most in carbon credits and clean energy projects as the government struggles to bring runaway carbon emissions into line with its Kyoto limit.
Spain's greenhouse gas emissions were 49 percent over 1990 levels in 2004 -- the highest of any Kyoto backer -- and its plan to cut to 15 percent over 1990 by 2008-12 relies on buying 289 million tonnes of carbon credits in developing nations.

Diplomats have been paving the way and have agreements with 17 countries in Latin America, plus Morocco and China, the Environment Ministry said this week.

To date Spain has accords, under the Clean Development Mechanism (CDM) and Joint Implementation umbrella of the Kyoto agreement, that give it 95.5 million tonnes of carbon credits for the 2008-12 period -- about a third of the amount it needs.

As well as the CDM credits, it is investing in World Bank and other multilateral funds, where so far it has gained another 57 million tonnes of credits at the cost of 305 million euros ($396 million).

"Spain is number one in technology transfer via CDM projects," the ministry says.



"Some 53 percent of these projects are located in Latin America and the Caribbean, 40 percent in Asia and the remaining 7 percent in eastern Europe and Africa."

Most are hydropower or wind generation projects.

The private sector is also actively investing in projects to provide credits under the CDM umbrella.

Electricity company Endesa , which has coal-fired power plant emissions to offset, is using a similar strategy to the government.

Besides investing in its own internal CDM projects in China and Latin America, it is buying into World Bank and other carbon funds and has launched its own "climate initiative" to look for other clean energy projects in which to invest.

It has analysed 100 potential projects so far, mainly in China and Latin America, and has surpassed its initial goal of 15 million tonnes, the company says.

Wind energy firm Gamesa has registered CDM projects in Mexico and the Dominican Republic so far, and has several more in the pipeline. Gamesa does not need the credits generated itself, but can sell them along with the wind parks it builds.

Smaller companies in sectors such as ceramics or cement are coordinating their CDM investments through their industry associations.

NUMBERS SHOW SIZE OF PROBLEM

Spain's carbon dioxide output in 2005 is estimated to rise to 53 percent above 1990, even with industry cutbacks in place.

The numbers speak for themselves, said Peter Sweatman, director for Iberia of specialist investment bank Climate Change Capital.

"The challenge that Spain faces is obviously considerable.

"All European governments have been directing resources at the carbon markets ... and Spain has taken a number of initiatives where it has shown itself to be a leader," he says.

Spain's economic development has come later and faster than northern European countries and the 15 percent increase in emissions that looked attainable in 1990 is now clearly out of reach, except by buying credits.

Industry allocation plans, energy efficiency and growth in wind, solar and biomass generation will cut what would otherwise be a more than 70 percent increase in greenhouse gas emissions to 37 percent for 2008-12, according to the official forecast.

Much of that growth is from transport and households, where rising living standards and population growth through immigration fuel a relentless rise in emissions.

The national allocation plan the government has sent to Brussels says it will lop another 20 percentage points off the 37 via credits from CDMs and carbon funds.

The remaining 2 percentage points will be cancelled out by carbon sinks, such as reforestation projects, to leave the balance at 15 percent.