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CEZ invests into multilateral Carbon Credit Fund (MCCF) administered by the European Bank for Reconstruction and Development and the European Investment Bank

13. 12. 2006

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CEZ invests into multilateral Carbon Credit Fund (MCCF) administered by the European Bank for Reconstruction and Development and the European Investment Bank

CEZ power company entered, through its public declaration, into obligation to invest into reductions of CO2 emissions independetly as well as in a new way, through specialized funds and isntitutions, such as, the European Bank for Reconstruction and Development. One of the first steps is the commitment to put up to 10m euro, but minimally 5m euro, into the carbon fund of MCFF. The investment will go to Joint Implementation (JI) projects and Clean Development Mechanism (CDM) in the countries where the EBDR is active.

For us, it is an important concrete step towards the creation of the JI/CDM projects portfolio, by which we fulfill our declaration of sustainable development. These investments allow us to draw CO2 emission allowances saved within these very projects, said Alan Svoboda, Chief Sales Officer of CEZ. In terms of geography, CEZ Group´s JI/CDM programme will primarily focus on the countries in central and south-eastern Europe, but it is also preparing projects to be implemented out of Europe, especially in co-operation with other investors. Due to the implementation of the programme, costs saving of allowances will be consequently re-invested into economy measures in accordance with CEZ´s former commitment to re-invest profit from allowances trading into further carbon dioxide reductions, added Alan Svoboda.

As greenhouse gas emissions respect no borders, the Kyoto Protocol allows countries to carry out a part of their obligation through use of so called flexible mechanisms. They shall enable industrial countries to provide for emission reductions in other country or to buy rights to emit greenhouse gases from other country. The Kyoto Protocol states the following three types of the flexible mechanisms: International Emissions Trading (IET); Joint Implementation (JI); and Clean Development Mechanism (CDM). Joint Implementation and Clean Development Mechanism allow to collect credits that relate to particular projects in a foreign country and demonstrably reduce greenhouse gas emissions. That usually concerns investments into new modern technologies.

CEZ Group devotes itself to abatement of carbon dioxide emissions in the Czech Republic. Under the forthcoming programme of its coal-fired production sources renewal, it is planning to reduce emissions in the renewed plants by 15 %, in case of newly constructed power plants the emissions will be over 25 % lower. CEZ Group also aims to extend its renewable energy sources portfolio. For that purpose it has founded a subsidiary company, CEZ Obnovitelne zdroje, which except for the sources using biomass- associates all CEZ Group´s renewable sources. At the moment CEZ Obnovitelne zdroje is preparing a number of projects primarily concerned in wind energy utilization. Electricity production from CEZ´s renewable sources in 2005 reached 1.45 TWh and was 19 % up on the previous year.

Under the public declaration of sustainable development, CEZ, i.a., commited itself to re-invest its profit from sales of saved emission allowances into measures leading to reductions in the level of  greenhouse gas emissions within the EU ETS system. These investments will mainly concern the renewable energy sources development or active participation in European technology research and development programmes for abatement of emissions. At the same time, there will be investments into practical implementation of the most modern technologies reducing greenhouse gas emissions.

Eva Novakova, Press Officer, CEZ, a. s.