Climate quotas system used to enhance profit?

The Norwegian state-owned company SN Power are building electric power installations in many developing countries. The company has been given quotas by the UN for projects, so far about 1 mill. CER (Certified Emissions Reductions). Other projects can yield 1.3 mill. CER. The price of the quotas vary, but will give SN Power income of 1-1,5 billion NOK.

This means that in practice CER are used to increase the profit of building ordinary power installations. Is the Norwegian company using a loophole in the rules? Should the quota money go to smaller and less profitable projects that need the quota money to be built?

The CDM (Clean Development Mechanism) was established in Kyoto in 1997 for the time up to 20012. A new agreement will be discussed in Copenhagen 2009.

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