Dutch government launch next round of carbon credit purchases

28 October 2002 – Senter, through its Carboncredits.nl programme, has announced a new ERUPT tender for JI projects. This will be the third procurement round of tenders executed by Senter in which the Netherlands government is purchasing CO2e from JI projects in mainly Central and Eastern European countries.

Interested parties can submit an Expression of Interest until January 30, 2003.
As before, the procurement process will be executed in two stages. During the first phase, interested parties can submit an Expression of Interest. After successful evaluation, Senter invites selected parties to submit a proposal. After assessing the proposals, Senter awards contracts to those suppliers having the most advantageous offer.

One significant departure from the previous two tenders is that the minimum amount of Emission Reduction Units (ERU) to be offered is lowered to 250 000 tonne over 5 years (2008 2012). Previously only projects which would generate at least 500 000 tonne were considered. The Terms of Reference, General

Carboncredits.nl helps companies investing in renewable energy and energy efficiency in developing countries or in Central and Eastern Europe improve the return on their investments. Through Carboncredits.nl the Dutch government buys the reduction in greenhouse gas emissions (carbon credits) that these projects generate, thus creating an additional source of income to boost the economic feasibility of projects and accelerate their implementation.

The Kyoto Protocol provides participating countries a number of flexible instruments for achieving their reduction commitment. Through Carboncredits.nl, the Netherlands is the first country in the world to use these instruments, namely Joint Implementation (JI) and the Clean Development Mechanism (CDM). JI and CDM are project related. An investor achieves a measurable CO reduction in another country, whereafter in this case the Netherlands buys this reduction.

Such investments in energy projects are of interest to the host country because they contribute to sustainable economic growth. These are projects that might not have been achieved without carbon finance. JI is aimed at countries that also have a reduction obligation under Kyoto, mainly Central and Eastern Europe. CDM focuses on developing countries without reduction obligation.

Carbon credits are reductions of emissions of greenhouse gasses caused by a project/an investment. One carbon credit is 1 t CO2 equivalent. greenhouse gasses are:

* carbon dioxide, CO2
* methane, CH4
* nitrous oxide, N2O
* hydrofluorocarbons (HFCs)
* perfluorocarbons (PFCs)
* sulphur hexafluoride (SF6)

In JI carbon credits are officially called Emission Reduction Units or ERUs. In the CDM they are called Certified Emission Reductions or CERs. You will also see the term ton CO2e, which is the same as a carbon credit, ERU or CER.

On behalf of the Dutch government Senter buys the emission reduction achieved (carbon credits) that are realised through an investment and that would not have existed without your investment. Senter pays approximately €2-5 per carbon credit. Prices are realised by process of competitive bidding.

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