The UK-based marketing and trading subsidiary of Russia's Gazprom has signed a six-year agreement with Propower do Brasil to acquire carbon emission reduction credits awarded to Propower's renewable energy biomass power generation plant in Guarapuava, Brazil.

<p>The credits will be those awarded by the Kyoto Protocol&#0039;s clean development mechanism (CDM), which allows industrialized countries to invest in emission-reducing projects in developing countries as an alternative to more costly carbon emission reductions (CER) in their own countries.<br /><br />Gazprom said that its marketing and trading division has also agreed to assist Propower with financing to invest in other Brazilian CDM projects, which will generate additional CERs for the UK unit. <br /><br />Gazprom said that its marketing and trading division started trading carbon credits under the EU emission trading scheme in 2006, and has since expanded its carbon business to include direct sourcing and financing of global CDM projects to complement its carbon offering for European customers. <br /><br />Gazprom said that investing in global CDM projects would prove a valuable resource in creating the framework for the company&#0039;s carbon projects in Russia in the near future. Gazprom added that, through this agreement, its UK subsidiary is now able to provide a full range of products and services, including long-term carbon contracts and carbon price hedging, to assist its customers in reaching their &#0039;carbon-neutral&#0039; goals. <br /><br />Now we can complement our EU carbon trading portfolio with valuable CDM project credits sourced together with Propower in Brazil and other CDM projects we are currently pursuing in other emerging markets, said Vitaly Vasiliev, CEO of Gazprom&#0039;s marketing and trading unit.</p>