Carbon Credits

There has been a lot of activity recently around "carbon credits". What are they, and how are they being used in Christchurch?

Carbon credits are measured in units of certified emission reductions. Certified emission reductions (CER) - a Kyoto Protocol unit equal to 1 metric tonne of CO2 equivalent. CERs are issued for emission reductions from CDM project activities. Two special types of CERs called temporary certified emission reduction (tCERs) and long-term certified emission reductions (lCERs) are issued for emission removals from afforestation and reforestation CDM projects. Clean Development Mechanism (CDM) is a mechanism under the Kyoto Protocol through which developed countries may finance greenhouse-gas emission reduction or removal projects in developing countries, and receive credits for doing so which they may apply towards meeting mandatory limits on their own emissions.

In Christchurch

Christchurch City Council has approved the sale of its carbon credits to British Gas. The sale, New Zealand’s first overseas carbon credit sale to a private sector buyer, will help reduce greenhouse gas emissions and generate more than $3 million in revenue, subject to exchange rates, for the Council over five years (between 2008 and 2012).

Burwood Landfill

In December 2004, the New Zealand Government awarded the Council 200,000 carbon credits (or Emission Reduction Units) for the capture and transport of methane gas from the closed Burwood Landfill to QEII Park to heat and power the sports facility. This award, made through the Projects to Reduce Emissions Programme, forms part of the Government’s response to its commitments under the Kyoto Protocol.

This project will turn waste into a resource through the capture and use of landfill gas that would have otherwise escaped into the environment contributing to climate change. Using landfill gas at QEII Park will also replace 1.5 million litres of Liquid Petroleum Gas each year, helping to reduce the Council’s reliance on fossil fuels.

By capturing the methane gas in this way the carbon emissions avoided by this project equals 10,900 cars taken off the road each year (assuming that a petrol powered vehicle travels 15,000 km each year and based on the carbon calculator found at www.nzbcsd.org.nz/climatechange) and the electricity generated by this project would power about 200 households (assuming a household would use 8,000 KW hours of electricity each year).

Between 2008 and 2012, the project would earn the Council around $3 and will replace 6.5 million litres of LPG used at QEII with landfill gas.

Read more on the Christchurch City Council's quick answers: The Council has been awarded Carbon Credits, what does this mean for Christchurch?

WhisperGen & Centennial Pool

In October 2006, Christchurch City Council and WhisperGen, the manufacturer of combined heat and power (“microCHP”) systems for homes and boats, made a connection which is helping heat the city’s Centennial Pool. The arrangement suits both parties, with the Council getting a cheaper heat source and the company making good use (and a small potential return) of a by-product of its test and production facilities.

The City Council has paid to connect its Centennial Pool complex to WhisperGen’s cooling system. The excess hot water is piped under the street to the pool’s plant room and through a heat exchanger, helping to heat the pool water. The savings made will pay off the Council’s investment within two years. After that, WhisperGen will be entitled to half the savings made as a result of using its excess heat.

Related links

2006 Govt3 awards

Includes booklet providing information on the successful actions taken by central government agencies to adopt environmentally sustainable ways of working.

Sustainable Business

Internet gateway listing of web sites.

Sustainable Business

localeye listing of Christchurch and Canterbury web sites.

Climate Change

Backgrounder with information on climate change.