Bloomberg News

Slovakia Close to Selling AAU Carbon Rights to Spain, Ziga Says

November 07, 2012

Slovakia is close to selling most of its surplus United Nations carbon-dioxide permits to Spain, Environment Minister Peter Ziga said.

The government is “about to sign an agreement” with Spain to sell allowances, known as Assigned Amount Units, representing 22 million tons of carbon dioxide equivalent, Ziga told reporters today in Bratislava, Slovakia. The purchase price will probably be less than 1 euro per ton, equal to the current market price, he added.

AAUs were distributed to nations based on the Kyoto Protocol, which set limits on greenhouse-gas emissions for the period 2008 to 2012. A global economic slowdown since 2008 caused industrial production to stagnate, boosting the supply of spare permits. Slovakia has surplus allowances worth about 27 million tons.

The east European country relies on proceeds from the sale of allowances to help it reduce the budget deficit. The government is also in talks with Austria on selling additional AAUs, Ziga said without elaborating.

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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