Companies announce first ever greenhouse gas transaction under new emissions scheme
The science company, DuPont and energy trading company, MIECO Inc. have announced the first-ever transaction of greenhouse gas emissions allowances under the UK’s newly developed trading scheme, instantly boosting the system, which will not even be formally launched until April 2002.
In the first transaction of the UK Emissions Trading Scheme, (see related story), DuPont sold 10,000 vintage 2002 greenhouse gas emissions allowances on a forward basis to MIECO Inc., a subsidiary of Tokyo-based general trading company Marubeni Corporation, in the deal brokered by Natsource, a leading broker of energy related products, which arranged the transaction using its London, New York, Tokyo and Washington offices. The deal is especially important as government incentives to join the auctions are yet to begin, and the system’s formal launch will not be held until April 2002.
“Welcoming the first piece of business on the new market Environment Minister Michael Meacher described it as “an important kick-start for the market”. “Any trade in allowances, combined with the main thrust of the Government’s strategy through domestic action, contributes to the success of the UK climate change programme, including the UK emissions trading scheme, and the development of international trading,” he said.
“We are delighted to be a part of the first-ever UK trade and strongly support the development of an efficient market-based approach to greenhouse gas emissions trading,” commented Paul Tebo, corporate vice president of DuPont Safety, Health and Environment. “An emissions trading system will optimise the use of resources and encourage the development of additional projects to reduce greenhouse gas emissions.”
“The transaction between MIECO and DuPont is significant because it is the first trade of UK allowances that will comply with an emission reduction requirement,” said Michael Intrator, the managing director of Global Emissions Markets at Natsource. “The trade also highlights that companies can utilise the global trading market to achieve economic and environmental objectives.”