Bulgaria Could Come Back into the ETS Before the End of 2010

Six months since Bulgaria was banned from the emission trading scheme, the UN body in charge of administering the Kyoto Protocol has stated that the country has corrected its problems. The administrative procedure for re-accreditation has begun and should be completed before the end of 2010.

The question was raised by the Bulgarian delegation to the UNFCCC CoP 16 in Cancun. The UN body replied that the visit by experts to the country in the autumn had produced positive results.

Bulgaria’s accreditation to the ETS was suspended in June 2010, due to problems with the national system of measurement of annual greenhouse-gas emissions in 2007 and 2008. It has come to light that, due to ignoring a message from the UN, the state had not measured emissions from certain sectors, such as waste. Apart from municipal and regional waste depots, the country had a large number of illicit landfills, whose ecological impact was not assessed.

Also, the validity of the data was brought into suspicion due to the lack of communication between the Ministry of Environment and Water, which is responsible for measurement and reporting, and the Ministries of Economy, Agriculture and Interior Affairs, as well as the National Statistical Institute. Nona Karadjova, Bulgarian Minister for Environment, explained that the visiting commission from the UN in the autumn of 2010 had reported that these problems have been resolved. As a result, the country should be allowed to resume trading its quota of 200 million ‘carbon credits’ in the beginning of 2011.

Nevertheless, the Vice-Chairman of the Bulgarian Chamber of Commerce, Mr. Dimitar Brankov, explained that the EU had allowed Bulgaria to trade its allowances only in April 2010, which resulted in only 9.4 million credits being sold before the suspension of the accreditation. Since the Kyoto Protocol expires in 2012, and the CoP 16 did not reach an agreement on a second commitment period, the fact that the country can begin trading again is not going to prove as fruitful as expected, added Mr. Brankov. Also, demand for credits is very low at the moment, which greatly limits the possibility of selling allowances.

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One response to “Bulgaria Could Come Back into the ETS Before the End of 2010

  1. Snezhina Kovacheva

    Thanks for summarizing this. With the necessity to be negative, I find it truly fascinating how Bulgaria is among the very few countries, which manage to not have their “house” in order and take advantage of the opportunities provided to them. Moreover, one of the very reasons why Bulgaria has wiggle-room was the timing of the 1990 cut-off point used in the scheme. Since the industrial levels of production collapsed after communism, Bulgaria had it easy so far. I wonder how the country will perform from now on…not basis for optimism…

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