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September 18, 2021
BUSINESS

Romania, suspended from trading carbon emission certificates

The Romanian state will lose hundreds of millions of euros because of the imminent suspension.

Romania has been suspended from the trading of carbon emission certificates by decision of the Kyoto Protocol Committee, which confirmed the preliminary conclusions of July 8 and will keep the sanction in effect until all requirements are met, Realitatea.net reports.

The imminent suspension, for a few months, of the transactions with carbon emission certificates will make Romania lose hundreds of millions of euros.

The situation is generated by irregularities in estimating greenhouse gas emissions at country scale, for which the chief of the National Agency for Environment Protection (ANPM) will be dismissed. “The head of the chief of the Agency for Environment Protection must be on a platter if this happens. I want a very strict plan that will allow us to resume the trading of these certificates within six months at most, but I want heads to roll if Romania is subject to such a decision, and the guilty must pay,” Prime Minister Emil Boc said on Friday.

The final decision to suspend Romania from the trading of carbon emission certificates will be announced today, August 29, two days after the end of a meeting of the Enforcement Branch of the Compliance Committee of the Kyoto Protocol – the document that provides carbon emission certificates (also known as “carbon credits”) to signatory states.

The proposal to suspend Romania was made in the previous meeting of the body, during July 6-8 in Bonn, Germany. Under the procedure, although the conclusions of the July meeting are preliminary, Romania is no longer entitled to a new hearing and may only have a “formal statement” in the August 25-27 meeting, held in Bonn as well.

The news about being suspended from the trading of carbon emission certificates got confirmed Friday in Targu Mures, by Environment Minister Laszlo Borbely, who said it is possible for Romania to be suspended Monday from the trading of carbon emission certificates, for a period which he hopes will not go beyond the end of this year, according to Mediafax. According to Borbely Laszlo, starting 2007, Romania must report to the Enforcement Branch of the Compliance Committee of the Kyoto Protocol the amount of greenhouse gas it generates. However, when he took over the ministry, Borbely found out that nothing had been done to this regard in the past, so he initiated six studies whose results will be available towards the end of this year.

Sources with the Ministry of Environment announced that Romania is already implementing measures aimed at meeting the demands of the Committee, such as increasing the institutional capacity of the National Agency for Environment Protection and of the Ministry of Environment and Forest, regarding the component of climate change/national system of carbon emissions, initiating studies on how to improve the data collection process, and increasing the specific expertise of the personnel working in this sector.

The results of these studies will allow the national system that estimates greenhouse gas emissions to improve its data collection, processing and reporting processes. With this new set of data, Romania will prepare a revised version of the national inventory, which it will send to the UNFCC Secretary General’s office, asking for a reinstatement of the eligibility within the shortest time, the Environment Ministry announces.

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