Home Latest News DEM takes active role in selling voluntary carbon credits
DEM takes active role in selling voluntary carbon credits
Wednesday, 30 January 2008 11:31
January 24, Danish Energy Management made the company's first agreement on voluntary emission reductions in Malaysia. The project is a biogas plant at United Plantations in the state of Perak, Malaysia, where biogas is generated from palm oil mill effluent.

Biogas is rich on methane, which is a greenhouse gas 21 times stronger than carbon dioxide. The plant was opened by HRH Princess Benedicte in September 2007, and has been in full swing since 1 January 2008. Since then it has reduced greenhouse gas emissions ot the benefit of the global climate.

ImageDue to the complexity of developing the CDM project and getting it approved and registered, the project only obtained registration in November 2007. This means that all the emission reductions from January to November do not qualify under CDM, even though they have been done. However, they can qualify as voluntary emission reductions and be certified under a scheme called "Voluntary Carbon Standard" implemented by the International Emission Trading Association.


Danish Energy Managment and United Plantation have agreed to certify the emission reductions from the period prior to the CDM registration and identify buyers for these voluntary carbon units. Potential buyers are both private companies and organisations who wish to offset their corporate emissions or US based companies participating in the voluntary carbon trading in the United States.

The verification of the emission reductions will take place in late January, where DEM staff will be at the project site together with verifiers from the German TÜV-Süd. We expect that more than 20,000 tCO2 emission reductions will be verified.