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Third carbon credit tender of Russia’s Sberbank

Russia’s Sberbank calls for applications to the third tender of JP with an increased limit 70 mln ton CO2. Projects will compete within the three sectors: Energy, Industry and Wastes. Russian NGOs consider that this system again doesn’t give an opportunity for renewable energy projects, because they can’t compete with large scale projects of energy monopolists.

Sberbank may face weak demand for its third carbon credit tender but it is ready to proceed with another by the end of next year if there is sufficient market demand, the bank’s carbon unit head said.

State-owned Sberbank, which helps administer the country’s Joint Implementation (JI) offset scheme and sets minimum prices for the sale of carbon credits, is taking bids for the third tender, worth 70 million credits, until mid-September. Speaking to journalists on Wednesday, Vsevolod Gavrilov also
said Sberbank could refrain from setting a price floor for sovereign carbon credits in the future unless it believes “clear manipulation” is occuring in the market due to lower prices. “We won’t issue (price) recommendations in the future unless we see facts that indicate clear manipulation,” Gavrilov said. “Up to now we don’t see any.”

Last year, Russia set a minimum price of 10 euros per tonne for Kyoto backed carbon offsets generated in the country, known as emissions reduction units (ERUs). Under JI, companies can invest in carbon-cutting projects in Kyoto signatory countries, and in return receive carbon credits called ERUs, which can be used toward emissions targets or sold for profit. “We expect that there will be fewer bids (than the tender ammount)... But all reasonable and effective bids will be approved,” Gavrilov said.

Sberbank and government ministries will allocate 30 million credits to projects in general industries such as steel, cement, chemicals and oil production, as well as 30 million to the power generation sector and 10 million to schemes that make use of landfill or waste gases.

REUTERS, August 17, 2011