Romanian Econ Min Aims Getting EUR2.5B From Greenhouse Gas Emissions Trades

Each operator has an allowance of credits, where each unit gives the owner the right to emit one metric ton of carbon dioxide.

For each ton of carbon dioxide will be issued an emission certificate, named Assigned Amount Unit (AAU). Economy and Environment Ministries will establish the number of units to be traded between 2008-2012, and their sale will take place in tranches. Each tranch should exceed 10 million AAUs.

The emission certificates will be traded between the governments of the countries that signed the Kyoto Protocol, the entities appointed by them and international financial institutions.

Under the Kyoto Protocol, which came into force in 2005, the participating countries have to reduce their collective greenhouse gas emissions by 8% below 1990 levels until 2012.

Romania’s transactions will be negotiated by a commission led by economy minister that will also include representatives of Economy, Environment, Finances, and Foreign Affairs Ministries.

The sums obtained from selling certificates will be used for investments in alternative energy sources, non-polluting technologies, desulfurization in thermal plants, storing waste, and upgrading energy units.

The beneficiaries of these investments can be local companies and administrations.

Between 2008-2012, Romania pledged to cut greenhouse gas emissions by 8% compared with 1989, similar with the percentage agreed with the European Union.

In order to observe the agreement, Romania’s national emissions should not exceed 255.96 million tons, thus, the AAUs might be of 100 million tons for each year of the period 2008-2012, according to the draft. According to the ministry, in 2007, Romania's emissions were of 152.29 million tons, almost 40% lower than in 1989.

By implementing the draft, the Economy Ministry estimates a lower unemployment rate by increasing the number of jobs, a higher competitiveness of industrial activities, and the diminishing of polluting emissions.

In 2005, EU adopted the CO2 trading by all the countries within the European Union under its European Trading Scheme, aimed to cut emissions by establishing a price for the carbon dioxide. Each operator has an allowance of credits. Operators that have not used up their quotas can sell their unused allowances as carbon credits.

Romania undertook, under the EU Accession treaty, to carry out an emissions trading scheme. This mechanism allows the applying of Kyoto Protocol that Romania ratified back in 2001.