According to GDF Suez, the contracts cover a total estimated volume of about 1.6 million certified emissions reduction (CERs) during the 2009-2012 contractual period. The CERs will be generated through one 48MW hydro project in northwest China, and one 99MW hydro project in southeast China.

The transaction was formalized with emission right purchase agreements (ERPAs) signed between GDF Suez, and two subsidiaries of the China Guodian Group.

The company said that, the entry into these ERPAs underlines GDF Suez’s strategy of contributing to CO2 emission-reduction activities in developing countries through strategic partnerships with major local companies in the field of Clean Development Mechanism (CDM) projects.

Clean Development Mechanism (CDM) is a carbon emission-reduction mechanism under the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC) which allows emission-reduction (or emission removal) projects in developing countries to generate Certified Emission Reduction (CER) credits, each equivalent to one ton of CO2.  These CERs can be traded and sold, and used by industrialized countries to meet part of their emission reduction targets.  The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction limitation targets.

GDF Suez is engaged in electricity and natural gas, upstream to downstream. It develops its businesses (energy, energy services and environment) responding to energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources.

 

 

 

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