World Bank buying $3.2-m carbon credits from Roxas
The World Bank has agreed to purchase carbon emission reduction credits worth $3.2 million from the bioethanol project of Roxas Holdings Inc. in Negros Occidental over the next four years.
The bank said in a statement that it signed an emission reductions purchase agreement with Roxol Bioenergy Corp., the bioethanol unit of sugar firm Roxas Holdings covering the companyâ€™s ethanol plant wastewater and methane gas recovery project, which is seen to avoid air and water pollution, mitigate the impact of climate change and help address poverty in Negros island.
The World Bank signed as a trustee of the Community Development Carbon Fund. The agreement has a crediting period of 10 years starting 2010.
The fund, supported by developed economies and largest companies worldwide, is one of the carbon funds being managed by the World Bank to purchase carbon emission reduction credits under the Clean Development Mechanism of the Kyoto Protocol.
It encourages investments in clean-and-green and climate-friendly business processes and technologies in developing countries, including the Philippines.
World Bank country director said the agreement with Roxol Bioenergy Corp. was the sixth agreement signed by the World Bank in the Philippines, since the bank started supporting carbon finance operation in the country in 2003.
â€œI am pleased to have signed this agreement because of its contribution to the countryâ€™s growth, poverty reduction, environmental improvement and mitigation of the impacts of climate change,â€ Hofman said.
Environment Secretary Lito Atienza said the project would support and strengthen the implementation of the countryâ€™s important environmental legislations such as the Biofuels Act of 2006, the Clean Water Act of 2004 and the Clean Air Act of 1999.
Under the agreement, the World Bank will purchase the carbon credits coming from the operation of Roxol Bioenergyâ€™s wastewater treatment facility and the methane gas recovery system of its ethanol plant in La Carlota, Negros Occidental.
Pedro Roxas, chairman of Roxol Bioenergy, said the agreement would give the company an income stream of at least $3.2 million in the next four years.
He said the project would avoid the emission of at least 50,000 metric tons of carbon dioxide annually.
He said a part of the revenue for the purchase of the emission reductions would be used to finance Roxolâ€™s community development projects, including livelihood and health services.