MALAY BIG BUSINESS MOVES INTO PALM OIL
Submitted by New Energy News Blog
The United Nations’ Clean Development Mechanism (UN CDM) allows companies in developing countries to sell Certified Emission Reductions (CERs) in emissions trading markets. The CDM certifies the number of tonnes of carbon dioxide equivalent (CO2e) a company’s project prevents. A CER equals one tonne CO2e prevented.
Palm oil, an agro commodity with nutritional and industrial value, is also in high demand as an agrofuel that replaces petroleum fuel. In this latter form, it earns CERs. Offering these multiple revenue streams of financial potential makes palm oil a highly valued commodity. Skyrocketing world agrofuels prices have led to skyrocketing palm oil prices that in Malaysia are driving the conversion of marginal land into palm oil plantations.
The marginal land, unfortunately, is often precious rainforest.
There is money to be made in palm oil. There is no money to be made in protecting the rainforest. YTL Corp, a Malaysian power and telecom conglomerate, just got into the palm oil business and is looking to make money from the commodity and the CERs. Aware of the bad rap it will get for allowing its business interests to supercede the protection of the rainforests, YTL wants to add waste biomass-to-biogas-to-electricity facilities at its palm oil mills to clean up the business’s image.
YTL Francis Yeoh, Chief Executive, YTL: “Biomass and biogas are very high in emissions that cause the greenhouse effect, so if we could recycle them and give it a commercially viable story, that would help keep our palm oil industry from being attacked so much…”
“Give it a commercially viable story…” That’s what he said. He’s going to proceed to aggressively destroy his nation’s rainforests and he wants to “…give it a commercially viable story…”
The CDM is working on a project to save the rainforests by selling CERs for preserving them. It’s called
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