Japan to buy excess Czech emissions allowance

The Czech Republic has signed an agreement with Japan to sell its surplus emissions allowance in order to help the country meet its emissions requirements under by the Kyoto Protocol.

Japan needs to buy an estimated 100 million tonnes of credits between 2008 and 2012 in order to cut emissions to 1.19 billion tonnes, the figure that represents 6% below 1990 levels.

The deal will cost Japan an estimated US$3.7 billion using the current European carbon emissions futures prices of $36.55 a tonne.

This is the third such deal for Japan, having already reached similar agreements with Hungary and Ukraine.

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