This is the Joint Implementation process – under Kyoto – covering Russia and Ukraine, and hence in theory should finish in December 2012. It can be seen that ERUs trade at a discount to EUAs.Many of the projects so far approved – mostly in Ukraine – relate to greater energy efficiency.
SBB 1 October 2010 Russian industrial facilities with greenhouse gas reduction projects, including steelworks, can apply for a second tender of Emissions Reduction Units (ERUs) from Sberbank from 4 October, Steel Business Briefing has learnt. The tender is for 30m ERUs, each of which recently fetched €13.15 ($17.96) each at a European auction.
As previously reported, the results of Russia’s first tender were released at the start of August. That time Evraz and Metalloinvest came away with 5.32m ERUs between them worth some $95m. However, other steelmakers, such as Magnitogorsk Iron & Steel and Mechel, did not make the final list of 15 approved projects and could re-apply for the second tender.
The companies must apply to the state-owned Sberbank for approval by 21 October. Officials from the bank expect to select the approved companies by the end of the year, Sergei Sitnikov of legal firm Baker & Mackenzie tells SBB. More tenders are likely to follow, he added.