The Norwegian Parliament (the Storting) has authorized the Ministry of Finance (the “Ministry”) to purchase emissions credits based on the Flexible Mechanisms of the Kyoto Protocol.
The Ministry of Finance will purchase emissions credits produced by Clean Development Mechanism (CDM) and Joint Implementation (JI) projects to obtain emission reductions acknowledged by the Kyoto protocol.
The combined authorization and appropriation for 2010 is NOK 4.9 billion, or about EUR 600 million. The Ministry plans to buy approximately 27 million tons for delivery during 2008-2012.
The Ministry invites you to submit offers for delivery of carbon credits.
Negotiations and closing of contracts are carried out continuously. The Ministry will consider all offers for certificates relating to projects which are registered or designed with the aim to be registered by the UNFCCC CDM Executive Board as CDM-projects, or Joint Implementation projects. Hydropower projects above 20 MW installed capacity will, however, be treated individually, on the basis of the EU-ETS voluntary harmonisation of the rules of the Linking Directive.
The Ministry will pay against delivery of Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs).
The Ministry is also authorised to enter into contracts on deliveries after 2012.
The Ministry invites offers from projects in all stages of the investment process. To promote the development of the carbon market, MoF will pay special attention to projects in countries where there are currently few or no registered projects. Its size in the carbon market enables it to accept relatively high performance risk and still offer the prospective supplier of credits a fair market price.
The minimum volume for each contract is 50,000 tonnes of CO2 equivalents combined for the 2008-2012 period.
Ethical Behaviour
The Norwegian Government supports promotion of corporate social responsibility and CSR is taken into consideration when contracts are awarded by the Ministry.
Contents of the offer
To facilitate negotiations, the Ministry urges suppliers to provide as complete information as possible. Any information required to be posted in a PDD along with documents assessing the financial and technical feasibility of the project, should be submitted if available to the seller at the time of submitting an offer.
Selection Criteria
The Ministry will select projects based on an evaluation of the price and risk of the individual offers. In the selection MoF will seek to balance the overall exposure of the portfolio.
The Selection Criteria are as follows:
- Price
- Delivery risk:
- Project specific CER/ERU delivery risk
- Project maturity (status of financing, approvals, etc)
- Quality of project documentation
- Contribution to overall exposure of the portfolio
- Social and environmental impact in the host country
Miscellaneous
The Ministry will not reimburse any costs or expenses in relation to the submission of offers and negotiating contracts, even if no contract is awarded.
All communication will be in English.
The Ministry of Finance is subject to the Access to Information Act which relates to all communication withthe government and governmental entities. The main rule is that documents are available upon request. Information that is subject to mandatory confidentiality is except for access. Exemptions may be made in respect of certain information that would impair the execution of the financial management of ministries and agencies.
The Carbon Neutral Norway Folder
- A brief introduction to the Ministry of Finance Carbon Scheme
