TransAlta, HEW in first transatlantic emissions deal
Date: 19-Jun-00
Country: UK
Broker Natsource told Reuters that Canada's TransAlta Corp will purchase 3,000
tonnes of greenhouse gas emission reducations each year for the next seven years
from Germany's Hamburgische Electricitaets-Werke (HEW).
"The buyer is financing actual emission reductions that can be made at lower cost
in a different country," said Natsource broker Garth Edward.
TransAlta will pay HEW to build new wind powered generation which does not
produce greenhouse gases. The German company already operates more than four
million kilowatt hours of wind power generation in plants at Georgswerder and
Neuland.
Edward said the deal is important because it shows the way forward for
trans-border emissions trading. Some analysts believe the global market for
greenhouse gas emissions trading could be $100 billion.
"TranAlta are hedging against a time when they might be forced to reduce
emissions," said Edward.
TransAlta hopes it will be cheaper for it to pay HEW to produce green energy than
if it was forced to cut emissions at its own power stations.
"TranAlta is environmentally aware and forward thinking," said Edward.
Developed countries have committed to reduce or limit emissions of greenhouse
gases under the terms of the Kyoto Protocol reached in Japan in 1997.
