Romania could derive 1 billion euro from trade in carbon emission rights

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Romania could derive almost 1 billion euro each year because the carbon emissions of its industries are 40% under the limits provided for under the Kyoto Protocol. The value has been confirmed by officials of the World Bank in Washington during a conversation with Chairman of the Committee on Industries and Services of the Romanian Chamber of Deputies, the lower chamber of Parliament, daily Jurnalul national reports.

„I had a conversation with Prime Minister Emil Boc about the carbon dioxide emissions. Romania has failed to win a single penny from this potential,” the paper quotes Economy Minister Adriean Videanu as saying. Videanu also says that energy investments in Romania could be supported by funds derived from trading in the carbon emission rights. Romania has to close 41 coal fired power plants by 2015, which would be 22% of its total production base, to get in line with the pollution rules of the European Commission.

„Romania’s energy system has been suffering over the past years for lack of investments. The country will lose important plants, unless rapid measures are taken,” says Videanu, mentioning the thermal plants of southwestern towns of Mintia and Petrosani might close in the next two years. „The thermal plants of Borzesti, Braila, Doicesti and Galatai as well as most of the thermal and electric plants of the big cities are at risk of closure,” says Chairman of the Romanian National Energy Institute for Energy Development Studies (IRE) Jean Constantinescu.

The paper says the funds to come from trade in carbon emission rights will be used for energy investments only, which means it could be used for the thermal insulation of housing units as well. For the thermal insulation project, the Ministry for Regional Development and Housing has this year earmarked RON 160 million (some 40 million euros).

Included in the project are 22,000 flats. At the same time, the ministry is contemplating raising an additional RON 300 million (some 75 million euros) on which to rehabilitate 60,000 flats. The thermal insulation of the existing 83,800 blocks of flats, totalling nearly 3 million flats, is put at 11 billion euros