* Approved wind farms to cut 11.3 mln tonnes of CO2 by 2013
* Two Chinese wind farms mistakenly rejected at last
* 12 projects rejected last week, worth 3.8 mln CERs
* Board tries to extend CDM reach by deferring fees for
By Michael Szabo and Nina Chestney
LONDON, Feb 15 A United Nations climate panel
approved 32 Chinese wind farms for carbon financing under the
Kyoto Protocol late last week, but blocked another six after
rejecting eight similar projects in December.
The approved wind farms will cut greenhouse gas emissions
by some 11.3 million tonnes by the end of 2012, the year the
current Kyoto pact expires, according to UN data.
Under Kyoto's Clean Development Mechanism (CDM), companies
can invest in clean energy projects in emerging economies, and
in return receive offset credits, only if they can show the
projects would not have gone ahead without the prospect of
revenues from selling those credits.
After noting a drop in financial support from Beijing in
the form of tariffs, the CDM's executive board rejected 10 wind
farms in December, saying they were profitable and capable of
cutting emissions without receiving the offsets, called
Certified Emissions Reductions (CERs). [ID:nGEE5B31ZC]
The board on Friday said two of those were rejected by
mistake, bringing the total rejected in December to eight.
At its latest meeting, the board fully registered 13
Chinese wind farms while conditionally approving another 19
subject to minor corrections in their applications.
The latest six rejected Chinese wind farms, five of which
were in the province of Heilongjiang, would have generated 2.1
million tonnes of CERs by 2012. The panel also rejected six
other clean energy projects, four of which were in China.
According to UN data, the 12 rejected projects would have
generated around 3.8 million CERs before 2012, worth 44 million
euros ($59.91 million) based on Friday's closing spot CER price
of 11.58 euros a tonne BNXCER.
The projects' investors included U.S. investment bank
Goldman Sachs (GS.N), Japanese government agency NEDO, Dutch
firm Essent Energy Trading and UK-based Climate Change Capital.
Companies participating in the European Union's Emissions
Trading Scheme rely on a steady flow of offsets to help them
meet emissions cut targets, and disruptions to the CER supply
can cause carbon prices to rise.
The board also fully registered 17 hydro projects including
15 from China, which will generate 8.2 million CERs by 2012.
Experts had said the projects faced similar registration
risks to those plaguing the Chinese wind projects.
DEFERS REGISTRATION FEES
In an effort to extend the reach of the CDM, the board
agreed to defer registration fees for projects in countries
that are home to less than 10 registered projects. Registration
fees are due only after the projects have been issued their
first CERs, the board said.
Of the 80 developing countries participating in the CDM, 53
nations, or two thirds, fall into this category, UN data
The CDM's board also said it is waiving registration fees
for projects in the world's least developed countries (LDCs).
The UN made $56.6 million in CDM revenues in 2009 including
$17.1 million in registration fees, the board said in its
At its last meeting in December, the board said it would
conduct spot checks on emissions auditors TUV-Sud and TUV-Nord.
On Friday it said it would review the outcome of these spot
checks at its next meeting in Bonn, Germany on March 22-26.
(Reporting by Nina Chestney and Michael Szabo; Editing by