Norway to buy more carbon credits
Norway’s ministry of Finance has signed an agreement with the Nordic Environment Finance Corporation, Nefco, to buy up to 30 million carbon credits from stranded UN-approved projects, which are struggling with low CER (carbon emissions reduction) prices.
The announcement underlines the commitment given in the country’s revised budget, in which the government said that buying credits would lend support6 to the development and “legitimacy” of the international market for so-called carbon offsets.
“Due to the situation in the market, with a huge oversupply of credits and low prices, this implies that the program will only procure credits from existing projects facing a risk of discontinuation and from new projects,” the ministry said in a statement.
“The program will rely on the UN-approval of carbon credits and on the guidelines for the program in the first Kyoto period.”
Nefco is owned by five Nordic countries, and finances environmental projects and investments. It’s Carbon Finance and Funds department has assets under management including carbon finance facilities, climate guarantees and technical assistance products totaling €230 million.