According to the World Bank estimates, the global carbon trading demand from 2008 to 2012 is 700 million to 1.3 billion tons, and the transaction value can reach 14 billion to 65 billion US dollars per year. Some well-known chemical companies that emit such gases are now actively preparing for carbon emissions trading in order to obtain significant benefits from them.
Rhodia Company stated that the UN Framework Convention on Climate Change Secretariat has registered its nylon intermediate adipic acid production facility in Ulsan, South Korea, so that its carbon dioxide emission credit can enter the international trading market. Because the nitrous oxide, a by-product of the device produced during the production process, is one of the six controlled greenhouse gases listed in the Kyoto Protocol, the global warming potential of 1 tonne of nitrous oxide is equivalent to the potential energy of 310 tons of carbon dioxide.
It is reported that in addition to Ulsan's adipic acid production facility in Rhodia, Paulina in Brazil also has a set of adipic acid production facilities, which have provided Rhodia with a total of 11 to 13 million tons of carbon credits annually. Since 2007, Rhodia's carbon credits can participate in international carbon market transactions. Its possible buyers are companies that are not as easy to achieve carbon reduction as Rhodia.
At present, global carbon emissions trading is still in its development phase, so it is too early to predict how or where Rhodia will implement its carbon credits trading. According to Rhodia, the early trading price of carbon credits in the international market is between US$11.8 and US$23.6 per ton. Based on this price, Rhodia sells its above-mentioned carbon credits, which can be obtained each year. Benefits 150 to 300 million U.S. dollars.
In addition, Ineos Fluor said it has agreed to sell 1 million tons of carbon credits to Natsource Europe. Infineon Fluor's carbon credits are derived from its cooperation with Ulsan Chemical Co. of Korea. By implementing this project, the production of by-product HFC23 in the production of refrigerant HFC22 can be reduced. Ineos Fluor also hopes to collaborate with India's Gujarat Fluorochemicals to implement a similar project to obtain a portion of the carbon credits available for trading.
Background link: The "Kyoto Protocol", which came into effect on February 16 this year, stipulates that industrial developed countries will reduce their total greenhouse gas emissions by 5% from 1990 to 2008. The restricted greenhouse gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). In order to achieve the goal of limiting emissions, all industrialized countries participating in the convention have been allocated a certain amount of greenhouse gas emission reduction quotas.
In order to achieve the targets set out in the Protocol, the Convention has formulated operational mechanisms to achieve these emission reduction targets, namely international emissions trading, joint enforcement mechanisms and the Clean Development Mechanism. The common feature of these three mechanisms is 'off-shore emission reduction' rather than the implementation of emission reduction actions in their own countries. The core of these three mechanisms is to quantify carbon dioxide emissions or emission reductions, allow market transactions and transactions, and guide companies to obtain the most Cheap abatement costs.
The United States "Chemical Engineering and News" pointed out last week that since the "Kyoto Protocol" was officially put into effect on February 16, this year, an international international carbon emission trading market has been formed that reduces carbon dioxide and other greenhouse gases as commodities. The amount has become a hot commodity in the investment community.