Bilateral climate change agreement between Norway
and Romania – signed 21 December, 2001
Norway and Romania has signed a bilateral Climate Change
Agreement on project co-operation for reduction of greenhouse
gases. This is the first bilateral Joint Implementation project
under the Kyoto Protocol that Norway takes part in, allowing for
transfer of credits. The Emission Reduction Units (ERUs) that
Norway will receive as payment for the investment, can be used to
fulfill the Norwegian Kyoto commitment. In Romania the project will
contribute to reduce local air pollution and improvements in the
heating systems in city of Fagaras, in addition to reduction in
greenhouse gases.
- Most of all the project
co-operation with Romania is an example on the large potential that
exists for international co-operation to reduce greenhouse gas
emissions. This is just a beginning of a co-operation with other
countries that is likely to grow strongly in the years to come. The
Norwegian Government want to see business and industries more
engaged in such projects. It is also important that projects also
provide additional effects in the host country, as in this case
modernisation of the energy system and reduction in local air
pollution, says the Norwegian Minister of Environment, Mr. Børge
Brende.
It is estimated that the project
will reduce the CO2-emissions with about 500.000 tonnes in the 15
years project period starting in 2002. The agreement implies that
Norway will receive about 35.000 tonnes annually or in total
170.000 ton for the commitment period 2008-2012. This can be used
to fulfill the Norwegian commitment under the Kyoto Protocol. The
cost of the emissions reductions are about 30 NOK per tonnes of
CO2, which is relatively inexpensive compared to many national
measures in Norway. The ERUs will have a value when the Kyoto
Protocol is ratified by both Parties and the Protocol enters into
force. The Parties also need to fulfill the eligibility
requirements under the Kyoto Protocol to take part in the so-called
Kyoto mechanisms. Romania has already ratified the Kyoto Protocol
and Norway plan to do so in spring 2002.
The European Bank of Reconstruction
and Development (EBRD) has provided a loan to the project and the
Romanian Government will contribute with a large share of the
financial package. Norway will contribute with about 5 mill NOK to
the project in 2002, which accounts for about 10% of the project
investment.
