French joint venture to handle carbon credits
Initial trades will involve chemical plants in Brazil and South Korea.
Two French companies recently announced that they will join forces to create what is expected to be one of the largest holders of carbon emissions credits worldwide.
The companies, chemicals firm Rhodia and banking group Société Générale, announced in October plans to establish a 50–50 joint venture to handle all their carbon trading interests. Called ORBEO, the outfit will build on past projects involving pollution reductions made at manufacturing plants in exchange for carbon credits.
The venture will initially market pollution reductions achieved at Rhodia’s chemical plants in Brazil and South Korea, generating close to 11–13 million metric tons of carbon credits per year from 2007 to 2012. Rhodia generates carbon credits by destroying the potent greenhouse gas nitrous oxide, a byproduct of nylon manufacturing. The 2 plants in Brazil and South Korea are among the world’s 10 biggest such Kyoto projects worldwide.
