Endesa has launched a pioneering global CO2 emissions rights purchasing initiative. The target is to purchase 15 million CO2 emissions rights through to 2012 via the flexible mechanisms provided for in the Joint Application Clean Development Mechanisms contained in the Kyoto Treaty.
The Spanish utility is planning to set up workshops worldwide with the purpose of explaining the contracting procedures and agreements necessary to carry out the rights trading. The five-step process for trading CO2 rights on behalf of Endesa guarantees both the buyer and the seller security throughout the entire procedure, starting with project analysis and culminating in the signing of a CO2 emission rights contract between the company and the project developer.
Rafael Miranda, Endesa’s CEO, said: We know how to do business and understand project developers’ requirements. We propose a flexible, pragmatic and speedy way to purchase emission rights, providing projects with additional hard currency liquidity. The simple contracting process will lead to reduced transaction costs for all parties concerned.
Endesa sees sustainable development as a growth opportunity for the company. Its Spanish facilities slashed their CO2 emissions by 27.5% between 1990 and 2004, while doubling their output during the same period. The utility expects its CO2 emissions to be 35% lower in 2007 compared to 1990.