Released on = June 11, 2007, 4:29 am

Press Release Author = "In this exclusive interview with CarbonFreeZone.com, Mr.
Halldor Thorgeirsson shared his concerns on Carbon Market and talks about UNFCCC's
initiative on CDM".

Industry = Environment

Press Release Summary = "In this exclusive interview with CarbonFreeZone.com, Mr.
Halldor Thorgeirsson shared his concerns on Carbon Market and talks about UNFCCC's
initiative on CDM".

Press Release Body = "CDM has proven the merit of market-based mechanisms to
stimulate investment and reduce emissions. The challenge now is to greatly leverage
the considerable potential of the mechanism which means more projects, covering
wider areas, generating more investment, and resulting in more emission reductions"
Said Mr. Halldor Thorgeirsson, Director of the Sustainable Development Mechanisms
Programme, UNFCCC in an interview with CarbonFreeZone.com

Kyoto Protocol allows developed country's to trade Certified Emission Reductions,
CER's generated from CDM and JI activities to meet their emission reduction targets.
He expressed his concern over the adaptability of CDM and meeting Kyoto targets.
More than 2 billion CER's are expected to be certified by the end of first
commitment period, but the number is less than half of the emission produced by the
European Community in a year. UNFCCC till date has around 700 projects registered
and more than 1600 in pipeline.
As Carbon Market and trading enters its new phase, it is shadowed by the uncertainty
in the market as rates per CER tumbling from as high as 30 euros to as low as 10
euros. "The demand for emission reductions is determined by the level of ambition at
the international level to address climate change. Without commitments to reduce
emissions there is no demand for emission reduction and there is no market" Mr.
Thorgeirsson shared his concern on the distribution of credits under National
Allocation Plan in EU Market and UNFCCC role in regulating such practices.

In this exclusive interview Mr. Thorgeirsson tried to clear confusion rising from
CDM approval processes and how UNFCCC is helping spread awareness about Kyoto and
Clean Development Mechanism (CDM) in least developed nations of the world,
especially Africa. "Nairobi Framework, initiated by former United Nation Secretary
General, Kofi Annan in 2006 will help African countries like in sub Sahara to
participate more actively in CDM initiative."
Major investment in CDM is concentrated in South Asian and South American leading to
an imbalance as far as investment goes, as these countries attract more investors
because of their growing and attractive economic structure. Due to this imbalance
countries in Africa and sub-Sahara region haven't been able to reap benefits from
Kyoto Protocol.

He acknowledged the growing concern over climate change in media and at the
household level, but called for a regulation on voluntary mechanism to follow a
standard quality procedure to be accepted as real in terms of emission reduction and
its impact. In last few years or so there has been a considerable increase in
companies proclaiming to provide offsets by planting trees or investing in renewable
energy projects many of which do not follow tough guidelines of Kyoto, thus raising
doubts over their offset mechanism and impact.

To read the full transcript of the interview visit:
http://www.carbonfreezone.com/Halldor_Thorgeirsson_Interview_405.aspx


Web Site = http://www.carbonfreezone.com

Contact Details = 132, Kendal
Purfleet
Essex