New Europe (Greece): Shell interested in Kyoto protocol projects in Russia: Tuesday 6 December 2005
Royal Dutch/Shell is interested in implementing Kyoto Protocol projects in partnership with Russia and Russian companies, Garth Edward, trading manager of environmental products at Shell International Trading, said at the Moscow Business Dialogue held by Interfax and the Royal Institute of International Affairs (Chatham House), London.
Edward said Shell would be concentrating on long-term relations with Russia in this sphere. It is also interested in delivering specific projects of its own or with partners in Russia, Edward said. They include reducing the amount of associated gas being burned off and buying emissions quotas in joint projects with Russian companies. Edward said that Shell was prepared to buy emissions at 21.5 Euro per tonne, which is the average price for Europe. But Shell, like other international companies is waiting for the Russian government to reach the necessary decisions.
Although Russia has ratified the Kyoto protocol, it has still not set national rules for trade in emissions, nor has it created the institutions responsible for any transactions, Edward said. Russia could be a key player in this market and its inability to trade quotas is costing it around 10 billion Euro a year, Edward said.
Edward said he thought Russia as a sovereign emissions vendor, should also look at the Kyoto Green Investment Schemes, because public opinion suggests that European countries are not prepared to buy hot air and would like guarantees that the money raised by selling quotas will be spent on environmental projects.
Demand for reduced emissions from oil, energy and electricity companies is strong on the world market. Some 12,000 facilities are involved in trading in Europe, and institutional and speculative investors are at work as well, Edward said.
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