This rip-off and rent-seeking almost makes you long for Bank of America Merrill Lynch’s subprime days.
– Mexico will earn a royalty on carbon credits generated from energy-saving light bulbs through a world-first deal that could pave the way for other developing countries to fund emissions cuts, the investor said on Monday.
Under the project, an Australian company, Cool nrg International, advised by Bank of America Merrill Lynch, will distribute 45 million energy efficient lightbulbs supplied by Philips Electronics to 6.5 million low-income households in Mexico City.
The aim is to generate energy savings of 33,000 gigawatt hours, cutting annual emissions by the equivalent of about one-third of auto emissions in a city renowned for its smog.
In total, the project aims to reduce 16 million tonnes of carbon dioxide (CO2), the main greenhouse gas, over 10 years.
The deal was announced on the sidelines of a carbon conference in Melbourne.
Every tonne of CO2 saved will generate a credit, or certified emission reduction (CER), which Cool nrg and Merrill Lynch will sell to companies in rich nations, such as those in Australia which face a A$23 a tonne carbon tax from mid-2012 under legislation due to be passed on Tuesday.
CERs traded on the secondary market in Europe closed on Friday at 6.50 euros ($9).
This money for nothing — are the chicks for free?