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The Danish Energy Agency (DEA) recently concluded an agreement to purchase forest carbon credits from nine Permanent Forest Sink Initiative (PFSI) projects located across both the North and South Islands of New Zealand totalling 1700ha.
The deal was facilitated by Permanent Forests International (PFI), a New Zealand based company that specialises in long term carbon forests. Director Mark Belton said it was pleasing to be able to achieve this groundbreaking agreement with Denmark because they are one of the most discerning buyers of project based carbon credits. Denmark applies stringent environmental standards in assessing carbon projects and requires that carbon credits are real, verifiable, additional and permanent (at a project level).
Mr Belton says this transaction represents a number of firsts. It is the first time Denmark has purchased carbon credits from forest projects and the first time it has purchased credits outside the Kyoto Protocol CDM/JI mechanisms. It is also the first time an EU Member state has purchased forestry credits from a developed country. While the EU ETS does not accept forestry credits EU Members can use them to meet Kyoto Protocol emission obligations.
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