In September 2007, the U.N.’s Clean Development Mechanism board opened the door to subsidizing new coal-burning plants. U.N. official strongly defend their approach, arguing that since the world is widely expected to get most of its energy from fossil fuel for decades, it is entirely appropriate for the program to subsidize plants that burn fuel more cleanly.
Among the plants seeking subsidies under the U.N. program is a $4 billion plant currently under construction in the Western Indian state of
Tata says the plant will emit an average 26.7 million tons of carbon dioxide annually during its first decade of operations. That’s 2.8 million fewer tons that the plant would discharge if it used the less-efficient coal-fired technology prevalent in
Tata Power’s application to sell carbon credits is being reviewed on behalf of the Board by a Norwegian auditing firm, Det Norske Veritas. The firm has its doubts about Tata’s bid, arguing that the project has already received funding and is part of an electrification push by the Indian government.
In the past year or so, the CDM board has also approved the sale of carbon credits by 13 big plants in
The architects of the CDM program hoped it would spark a renewable-energy revolution, prompting a shift away from fossil fuels towards renewable energy. In fact, renewable energy accounts for only about a third of the carbon credits proposed to be issued by 2012, according to U.N. figures.
Concern about the program is spreading in the U.S. Doubts about the validity of some pollution-cutting project in the developing world were one factor in the Senate’s rejection last month of a bill that would have capped U.S. greenhouse-gas emissions.
