LONDON, March 30 Carbon emissions auditors suspended by the U.N. late last week called for clarification of the rules of a Kyoto Protocol carbon finance scheme under which they operate, with one mulling fighting the suspension.
The executive board of Kyoto's Clean Development Mechanism (CDM) suspended Germany's TUEV SUED and partially suspended Korea Energy Management Corporation (KEMCO) for procedural breaches and over concerns about personnel qualifications. [ID:nLDE62S0EO]
"The company officials are now discussing internally how they will dispute," an official at KEMCO said on Tuesday.
He said KEMCO has six months to dispute the suspension, and during this time the board will make spot checks at the firm.
KEMCO was given the green light to continue working with renewable energy projects, energy efficiency projects and projects to cut chemical industry emissions, but was barred from working on any other types.
The CDM's executive board said TUEV SUED can continue working on existing projects but cannot take on new work.
The board has now fully or partially suspended four firms in the past 15 months for breaking rules under the CDM.
"In our view, this increase in the number of temporary suspensions also indicates that the provisions for (firms) are not clear enough", said Sven Kolmetz, head of carbon management services at TUEV SUED, in a statement.
"Companies need unambiguous, clear provisions and framework conditions to enable them to carry out their activities in compliance with the standard."
Under the $33 billion CDM, firms can invest in greenhouse gas cuts in developing countries and in return receive carbon offsets which they can sell for profit. (Reporting by Michael Szabo and additional reporting by Cho Mee-young in Seoul; editing by James Jukwey)
Trending On Reuters
The SEBI plans to overhaul the corporate debt market by pushing all issuance onto an electronic platform as early as November, sources told Reuters. Article