OSLO: DNV has verified the first ever certified emission reductions (CER) under the Kyoto Protocol. These credits were issued by the Executive Board of the Clean Development Mechanism last week, and they comprise two hydroelectric projects in Honduras, expected to generate 54,800 CERs annually. A CER amounts to one tonne of CO2 equivalent.
The credits were issued for two hydroelectric projects in Honduras. ‘La Esperanza Hydroelectric Project’ is expected to initially generate annually 37,000 CERs and is registered in partnership with Italy, while the ‘Rio Blanco Small Hydroelectric Project’, in which Finland has a stake, produces 17,800 CERs per year.
The projects were previously this year validated by DNV, which is one of the ‘designated operational entities’ that play an important role in the Clean Development Mechanism (CDM), where industrialised countries or companies can receive credits for financing emission-reduction projects in developing countries. In this way developing countries gain a new source of financing towards their sustainable development, whereas companies in industrialised countries can supplement their commitments to reduce emissions at home.
DNV was the first company to be accredited as a Designated Operational Entity (DOE) by the CDM Executive Board, both for validation and verification of CDM projects for all major sectors. The way the system is designed climate change project applications first are to be validated by an independent and accredited third party. Then the projects are implemented. After that it is verified whether the project output is as estimated and that the projects comply with the rules. Designated operational entities also certify the emission reductions achieved before the CDM Executive Board clears any CERs for issuance.
Projects doubled every quarter
Since the Kyoto Protocol entered into force in early 2005, the number of registered CDM projects has doubled every quarter. It now stands at 26 and is growing.
“Around 300 projects are currently awaiting validation, 200 of them at DNV,” says Einar Telnes, technical director in DNV Certification. This indicates that project developers around the world now know of the opportunities offered by the CDM and are confident that their projects can comply with the rules.
The CDM deliver sustainable development to communities and at the same time real emission reductions. Both projects in Honduras supply renewable energy to the national grid. The country would otherwise have to rely on carbon-emitting fossil fuels to generate the equivalent electrical power.