Bloomberg News

Slovak Company Sells AAU Kyoto Permits on Bratislava Exchange

October 14, 2011

Oct. 14 (Bloomberg) -- An unspecified Slovak company was seeking to sell 90,000 metric tons of Assigned Amount Unit greenhouse-gas permits on Commodity Exchange Bratislava for at least 5.40 euros ($7.46) each, said an official at the exchange.

In a sale that’s the first of its kind, buyers can place bids through Oct. 31, Ludovit Scholtz, secretary general of the exchange in Slovakia, said today by phone. The sale of the AAUs started at 9 a.m. local time. “We wanted to give everyone a fair amount of time,” he said.

Details of the company and the country of origin of the AAUs are available to “serious” bidders willing to sign a non- disclosure agreement, Scholtz said. AAUs are granted to developed nations with emissions targets in the 1997 Kyoto Protocol for the five years through 2012.

Buyers require collateral of at least 2 percent of their bids, Scholtz said. The permits are linked to emission reductions under a process known as a Green Investment Scheme, he said.

The so-called greening program is meant to provide environmental credibility and avoid accusations by environmental groups that some eastern European nations sell “hot air” after a slump in their industrial production following the fall of communism drove their greenhouse-gas emissions below targets.

--Editors: Raj Rajendran, Rob Verdonck.

To contact the reporters on this story: Ewa Krukowska in Brussels at ekrukowska@bloomberg.net; Mathew Carr in London at m.carr@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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