Posted by adminDecember 13, 2006News

Emission Reduction Purchase Agreement

KUALA LUMPUR: Golden Hope Plantations Bhd (GHope) chief executive, Datuk Sabri Ahmad was speaking to reporters after signing the Emission Reduction Purchase Agreement (ERPA) between GHope and the Danish government, which was represented by its ambassador to Malaysia, Borge Petersen, yesterday.

Sabri said the ERPA was to assist the Danish government in achieving its obligation as a signatory to the Kyoto Protocol. The agreement was part of initiatives under the Clean Development Mechanism (CDM) adopted by the United Nations Framework Convention on Climate Change in 1992.

The Kyoto Protocol (1997) stipulates that Annex 1 countries, industrialised and developed nations, must reduce their emission of green house gases (GHG) to below 5.2% of the 1990 levels by 2012.

According to the agreement, GHope will sell CERs from its CDM projects called Methane Abatement through Composting, carried out at its five palm oil mills in Sabah, Sarawak and Pahang. The agreement, valid until 2012, will see a minimum CERs, equivalent to 390, 000 tonnes of carbon dioxide, sold within six years.

“We expect by mid-2007, GHope will be able to gain additional income of at least RM800,000 from a 90-tonne per hour palm oil mill from the sale of CERs from our CDM projects,” Sabri said.

Source: The Star

(2006-12-13)

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