WEF buys CO2 emission credits from Indonesian geothermal: Report

The World Economic Forum (WEF) has bought credits for reduction in greenhouse-gas emissions from a geothermal project in Indonesia to offset the global warming impact of its annual meeting, Dow Jones reported as the organization said Wednesday.

The 4,000 tons of carbon dioxide credits purchased covers the conference's electricity consumption, as well as energy to transport attendees to, from and around the conference, which will be held in New York City from Thursday through Monday. In the global system for trading greenhouse-gas emission allowances, renewable energy sources such as geothermal generators are granted credits because they don't burn carbon fuels.

"Our mission to improve the state of the world must focus on improving the environment in a way that does not jeopardize economic progress, and emissions trading is a market-based mechanism that achieves this," Jose Maria Figueres, Managing Director of the WEF, said in a press release.

This is the third consecutive annual meeting for which the WEF has purchased emission credits.

Gunung Salak Geothermal plant sold the emission credits. The plant, operated by Indonesia's state electric company PT. PLN, Pertamina, and Unocal Corp., displaces some coal-fired power generation in Indonesia. The Environmental Resources Trust has certified the plant's contribution to CO2 reduction.

"The global market affords organizations around the world an opportunity to find the most cost-effective source of reductions available," said Michael Intrator from Natsource, which brokered of the deal.

CH2M HILL, an engineering and construction management firm, is determining the amount of greenhouse gases emitted as a result of the meeting for the WEF.

Neither the cost of the credits nor the cost of the study was disclosed.

But, according to market participants, internationally generated CO2 credits trade at about $4.50 a ton. (*)