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(Updates with Hession comments from second paragraph.)
Oct. 20 (Bloomberg) -- The United Nations-overseen carbon credit executive board may use sampling to speed approvals for projects and offsets as early as next year, Chairman Martin Hession said in London.
A “risk-based” assessment model would mean the Clean Development Mechanism executive board could closely assess a portion of projects and credit-supply requests instead of investigating each application as it currently does, Hession told reporters today at the Carbon Show in London.
A record of at least 592 projects entered the validation stage of the CDM program in the three months ended September, about 14 percent of all projects seeking registration under the program of the 1997 Kyoto Protocol. Almost 3,000 projects have been approved since the program started. Emission reduction projects are seeking registration by the end of next year because of a deadline imposed by the European Union, whose factories and power stations are the main buyers of credits.
The sampling would require more consistent applications from the audit firms employed by projects in developing nations seeking credits, Hession said. “It’s the way we need to go,” he said. “We’re busier than ever.”
The board is seeking feedback from regulators in proposed carbon markets in Australia, California and South Korea as it seeks to streamline its approval process and stem criticism that it ratifies too many credits from projects that are not credible, Hession said.
UN Credits Fall
The U.K. is seeking support for tighter emission-reduction targets from EU countries and other nations to boost demand for credits, Hession earlier told delegates at the conference. He is a climate negotiator for Britain.
UN emission credits dropped to a record as a French-German split over Europe’s rescue strategy emerged before a meeting in Brussels tomorrow to craft a solution to the region’s sovereign- debt crisis.
UN credits for December dropped as much as 2.3 percent to 6.69 euros ($9.25) a metric ton on ICE Futures Europe exchange. They were at 6.80 euros at 1:25 p.m. in London. European allowances rose 4 cents to 10.06 euros.
--Editors: Rob Verdonck, Alessandro Vitelli
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