Portugal to Invest 354 Million Euros to Meet Kyoto
Date: 23-Nov-06
Country: PORTUGAL
Portugal will use the credits to meet an anticipated overshoot of 3.73 million tonnes of carbon dioxide (CO2) a year during 2008-2012.
That figure was based on Portugal's CO2 emissions plan for the period, the second phase of the European Union's carbon trading scheme, that was sent to Brussels a few weeks ago.
Under Portugal's plan and its Kyoto Protocol target, the country should not emit more than 77.19 million tonnes of carbon dioxide a year in 2008-2012, which is also the key period for the Kyoto pact aimed at averting damaging climate change.
The government committed to taking additional measures to cut pollution, in addition to buying carbon credits, to ensure it reduces its emissions to the Kyoto target from its current level of 84.6 million tonnes a year.
"The carbon fund will have a total 354 million euros until 2012, it will be financed by the budget but all of it through carbon taxes," Rosa told journalists.
"Portugal will fulfil Kyoto ... and Portugal's carbon fund, in investment amounts, will be the fourth or fifth largest in the world," he said.
Portugal's carbon fund will be able to invest in mechanisms for so called clean development, or projects that help reduce pollution in other countries, thus generating less pollution and giving carbon credits to Portugal, Rosa said.
It will also be able to invest in developing so-called carbon sinks -- natural reserves such as forests that store or capture carbon and thus help to cut pollutants in the air.
