Cambodia Can Earn Millions of Dollars from the Carbon Market – Friday, 28.8.2009

Posted on 29 August 2009. Filed under: Week 627 |

The Mirror, Vol. 13, No. 627

“With the remaining forest cover in the country and with activities to conserve the environment, Cambodia is thought to be able to earn millions of dollars by selling carbon credits in the volunteer carbon market if Cambodia has experts.

“In Cambodia so far, there are not many people who know how to earn money to be used for development and humanity activities legally from the volunteer carbon market by selling carbon credits, while at present Cambodia is a country that has already ratified the Tokyo environment protocol, and it is considered to be a country that has potential.

“The volunteer carbon market is a free trade market, created after many countries had signed and ratified the Tokyo protocol. It is a market formed by between volunteer buyers, mostly big companies in industrialized countries that emit much carbon dioxide, and sellers, mostly organizations or communities in developing countries that are active to conserve the forest and to prevent the emission of carbon dioxide into the atmosphere. At the volunteer carbon market, both sides can settle their accounts through carbon credits, corresponding to the quantity of carbon dioxide that is reduced to be emitted into the atmosphere by any activities with this effect. For example, using a stove consuming firewood can release 1.5 kg carbon dioxide into the atmosphere, but a community had came up with a creative idea to create a new type of stove which can work as well as the previous one, but emits only 1 kg carbon dioxide. Thus, the remaining 0.5 kg of carbon dioxide is the carbon credit that can be kept to exchange for money.

“In the world nowadays, a tonne of carbon dioxide can be exchanged for up to Euro 30 (roughly US$ 42.80).

“The head of the Climate Change and Renewable Energy Unit GERES Cambodia, Mr. Minh Le Quan, said recently that by now, there have been about tree projects only in Cambodia that receive credits from the volunteer carbon market, and one of them is the project of GERES Cambodia. He does not know how much dollars those projects can make by exchanging carbon credits, but he just said that in general, it is kept confidential, because in the volunteer carbon market, there are also competitions like in other commercial markets. He merely said that Cambodia is a potential country.

“He added, ‘The settling of carbon credit accounts is like food buying, where sellers have to compete with each other. It is a trading market, and the prices depend on quality and negotiations.’

“According to Mr. Le Quan’s estimation, so far, prices in the settling of accounts of carbon credits per tonne of carbon dioxide that Cambodia receives are from US$4.- to Euro 20 [approx. US$28.50], and most of the clients of Cambodia are from Europe and Australia. Also, there is a small number of clients in the country. The reason that Cambodia cannot receive high prices like other countries is that Cambodia has not had much of its own ability developed to reach the volunteer carbon market; Cambodia sells its carbon credits through brokers.

“Mr. Le Quan went to on say, ‘I do not know about other projects, but a project of GERES Cambodia could help, from 2003 to 2007, to reduce 314,854 tonnes of carbon dioxide, and it could help about 1.2 million citizens.’

“At present, the volunteer carbon market is operating in some countries such as Australia, the European Union, New Zealand, and the USA. According to an estimation of the World Bank in 2007, the whole quantity of carbon dioxide worldwide is worth as much as US$64 billion, while only 123 million tonnes of carbon dioxide could be sold in 2008, earning just US$705 million.

“Besides the three projects mentioned above by Mr. Le Quan, another project is being prepared by the Forestry administration and PACT Cambodia.

“The deputy head of the Forestry Community Department of the Forestry Administration, Mr. Long Ratanakomar, said via telephone last week, ‘Cooperating with PACT Cambodia and with nine forest protection communities in Oddar Meanchey, we had reached an agreement with a company based in the United States to conserve a forest region of about 60,000 hectares; it is an effort to prevent the emission of carbon dioxide, about 8.5 million tonnes within 30 years.’

“However, Mr. Ratanakomar does not yet know how much the agreement will cost, saying that it needs further clarifications and interpreted legal procedures.

“Regarding the trading of carbon credits in the volunteer carbon market, Mr. Le Quan said that it is not easy, and not each individual can engage in activities to protect the environment, and then ask to exchange carbon credits. Money from carbon credits cannot be transferred into the pockets of an individuals. All money will be kept collective to be used continually for training, for the construction of infrastructure and of schools, and for the creation of jobs.

“He stated, ‘A person can join to protect the environment by, for example, not using vehicles, but they cannot exchange those activities for cash. The exchange for cash needs to be negotiated and to go through many complex legal procedures.’

“Thus far, the projects that have been receiving credits from the carbon credit trading in the volunteer carbon market are a project to create a type of special stove by GERES Cambodia [see embedded Video after the headlines – there may be some seconds time delay], a project of the Cambodian Center for Study and Development in Agriculture (CEDAC), and another project of the national-level bio-energy program of Cambodia. It is expected that in the near future, forest communities in Oddar Meanchey will receive one more project.” Rasmei Kampuchea, Vol.17, #4984, 28.8.2009

Newspapers Appearing on the Newsstand:
Friday, 28 August 2009

Deum Ampil, Vol.3, #274, 28.8.2009

  • The Body of a Second Khmer Man Gunned Down by Siam [Thailand] Was Found [at the Dangrek Mountain] Ahead of a Hearing on Khmer [illegal] Loggers in Ubon Rachathani Province [of Thailand]
  • The Deadline for Citizens of Village 2 and Village 4 at the Boeng Kak Region Ended [on 27 August 2009; according to the deputy governor of Daun Penh district, Mr. Sok Penhvuth, all families had agreed to move out and only one family chose the in-place development option]
  • An Electric Crematorium Is Prepared to Be Opened for the Public [at the Russey Sanh pagoda in Prey Sar commune, Dangkao, Phnom Penh]
  • Taiwan Allows a Visit of Samdech Sang Dalai Lama [to commemorate the people who died and to bless those surviving from a recent typhoon]

Kampuchea Thmey, Vol.8, #2034, 28.8.2009

  • Moto-Taxi Drivers in Banteay Meanchey Protested for the Second Time to Ask for an [import] Tax Reduction
  • Cart Pullers at the Poipet Border Crossing Complain They Have No Money to Buy Rice [because there are less goods to be pulled to earn money]
  • One Statue with Four Naga Heads [designed in the late 1950s by the Cambodian architect Vann Molyvann] Was Removed at the Kbal Thnol Roundabout by Officials Using a Crane [to make way for the construction of an overpass to relieve the traffic jam], Damaging Two of Them and Their Tail [Phnom Penh]

Khmer Machas Srok, Vol.3, #478, 28.8.2009

  • The International Labor Organization of the United Nations Said that the Economic Crisis Makes an Additional 200,000 Khmer People to Fall into Poverty

Koh Santepheap, Vol.42, #6740, 28.8.2009

  • A Safety System Is Organized for Gold Sellers and Currency Exchangers [the Phnom Penh police chief, Mr. Touch Naroth, asked them to install an alerting signal system, and to use hard-to-break glass [Phnom Penh]

Rasmei Kampuchea, Vol.17, #4984, 28.8.2009

  • Cambodia Can Earn Millions of Dollars from Carbon Market
  • America: The Reduction of Troops at Preah Vihear by Cambodia Is a Positive Point for the Cambodian-Thai Dispute
  • Officials [of the Ministry of Economy and Finance]: The World Bank Will Focus on Helping in Agriculture
  • Insurance Companies Joined to Create an Insurance System for Border Crossing Vehicles
  • The Ministry of Land Management, Urbanization and Construction Indroduces a Sub-Decree about the Management and Usage of Ownership in Condominium Buildings [it defines how to register the rights of private ownership in condominium buildings for all condominium owners: to document the locations, sizes, and percentage of privately owned condominiums, in
    proportion to the whole size of the whole condominium building, and the type of property]

Sereypheap Thmey, Vol.17, #1782, 28-30.8.2009

  • [The advisor of the prime minister] Om Yentieng and [Prime Minister] Hun Sen’s Family Appear in the Global Witness’s Report Again, Related to Mine Exploitation at Prohibited Forest Regions
  • The New Building of the Council of Minister Is Being Threatened by a Superstition [it is believed by some that the new building may affect the Prime Minister’s fortune]

Have a look at the last editorial – you can access it directly from the main page of the Mirror.
And please recommend us also to your colleagues and friends.

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One Response to “Cambodia Can Earn Millions of Dollars from the Carbon Market – Friday, 28.8.2009”

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Nice article. Good to know that..


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