Mexico is rapidly becoming a key market for environmental investments, and now accounts for one in every five projects involving Clean Development Mechanisms (CDMs) in Latin America. A recent Reuters news item gives the basic details of one CDP project:
- Mexico to earn royalty on light bulb carbon credits
CDMs, established after the Kyoto Protocol, allow companies in developing countries to sell Certified Emission Reduction certificates (CERs) to buyers in industrialized countries, to offset their own emissions control targets. The certificates prove that there has been a reduction in greenhouse gas emissions.
One project involving CERs, started by Australian company Cool nrg International, will reduce Mexico City’s carbon dioxide (CO2) emissions by 16 million tonnes over the next 10 years. The company is distributing 30 million free energy-efficient lightbulbs to 6.5 million low-income households, which will save 33,000 gigawatt hours of electricity.
Watch Nick Francis from Cool nrg explain the plan and why it is a win-win-win for everyone concerned:
Every tonne of CO2 saved generates a CER credit (currently trading at 9 dollars). For every credit, Mexico receives a royalty payment. Cool nrg then sells the CERs to companies in industrialized countries. The project is a world first and its success will be closely monitored by many other countries.
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