The Danish Ministry of Foreign Affairs on December 12 signed an emission reduction purchase agreement with the Malaysian company Golden Hope Plantations Bhd.
The agreement to purchase credits from five Golden Hope palm oil mills, where composting project will take place, will be approximately 407,000 tones of CO2 credits over next six years.
The composting project is a process of controlled biological decomposition of organic materials. It will be registered as a Clean Development Mechanism (CDM) project under the Kyoto Protocol, which will help Denmark in meeting its commitments to reduce the emissions of greenhouse gasses. At the same time, the agreement will allow Malaysia to reach its goal for renewable energy. Also, the Golden Hope Plantations Bhd. can sell credits and further minimize the air and water pollution problems existing in the baseline scenario.
