ACR-News

ENVIRONMENTAL groups are calling for an end to incentives for third world countries to over-produce HCFCs.
Under the Kyoto Protocol's Clean Development Mechanism (CDM), industrialised countries can buy emissions credits for the reduction of greenhouse gases in developing countries.

Perversely, the majority of the early credits have been for the destruction of HFC23, a potent global warming gas used in fire suppression systems and a by-product of R22 production. Because these credits are so lucrative - estimated at $2.4bn (£1.25bn) for 2005 - environmentalists insist that these create a strong disincentive to stop the production of the source chemical.

So far, the CDM has registered eight companies that produce R22 to be eligible for emissions credits. One such deal announced in early October, pays two Chinese companies $1.02bn (£533m) to destroy about 100 million CO2-equivalent tonnes of HFC23. To receive this money, however, they will have to produce about five times as many CO2-equivalent tonnes of R22.