Dóra Fazekas Carbon Market Implications for new EU - UniCredit ...

Figure 18. Tradeable Hungarian AAU
Source: Fogarassy, Cs. - Lukács, A. - Nagy, H. (2008)
Hungary’s strategy is to sell 10 million AAUs in an initial phase, to test its GIS. If successful, the
country plans to sell another 30-40 million AAUs over the Kyoto commitment period. No sales
were organized during the pilot phase, but it is worth mentioning that on December 18, 2007
Hungary signed its first Memorandum of Understanding with Japan to sell AAUs. There were two
sales during 2008: Belgium bought 2 million AAUs from Hungary on September 29 11 then another
6 million AAUs were sold to Spain on November 12. 12 Besides the two Hungarian sales only one
was done: Slovakia sold 10 million AAUs to a Swiss private company. 13 In the framework of the
Kyoto Protocol (during the time of writing of this dissertation) hence there were three AAU
transactions (Slovakia already sold 200.000 allowances to Japan in 2002). The prices for Hungarian
sales are not public, but estimated around #13 by analysts; while Slovakia sold for #6/tonne, albeit a
significantly higher amount.
GIS vs. JI
Concluding this chapter, let us compare these two mechanisms, characteristics only to the EU12.
The project approach has similarities to Joint Implementation, however GIS is more flexible
because it is not subject to the rules and procedures of the UNFCCC and the Marrakech Accords.
There are two factors that hold back the extensive use of JI and that explain the need for the GIS.
11
Point Carbon: Belgium buys 2 million AAUs from Hungary, September 29, 2008.
(http://www.pointcarbon.com/news/1.978020)
12
Point Carbon: Spain buys credits from Hungary in biggest AAU deal yet, November 12, 2008.
(http://www.pointcarbon.com/news/1.1003707)
13
Point Carbon: Slovakia sells Kyoto carbon credits at #6.05, November 25, 2008.
(http://www.pointcarbon.com/news/1.1010430)
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