CIG has become aware of a recently announced agreement between Israeli company, Haifa Chemicals Ltd., and Citigroup, a major U.S. financial services firm, to sell carbon credits after the chemical companies recent acquisition of new greenhouse gas emissions cutting technology.
Under the new agreement Haifa will see an increase in revenues of about $60 million, according to a recent statement from Citi.
The agreement forms part of the United Nations $6.5 billion Clean Development Mechanism, under which rich nations are permitted to trade CER’s from developing countries to meet targets for cutting CO2 emissions.
CIG has learned that Haifa Chemicals, whose core business is the production of specialty fertilizers, food additives and technical chemicals, purchased the new environmental technologies from the UK firm Johnson Matthey, and will now be able to market 2.5 million CER’s to industries failing to meet their own emissions quotas as a result.
Citi’s Israel managing director was quoted as saying, "The deal is one of the largest signed by Citi in Israel, "Citi's extensive experience with international corporations in the area of CER credit makes it a natural partner for Israeli companies looking to explore the possibility of entering into projects such as emission reductions."
The Kyoto Protocol declared that each CER represented a tonne of carbon dioxide equivalent saved from being emitted and these are tradable on the EU’s London based European Climate Exchange.
The CEO of Haifa Chemicals reportedly said in a statement, "We all share the responsibility for the future of planet Earth and I hope that more companies and other production facilities will follow Haifa Chemicals' path and join this global effort,"
