First ERUs to be transferred from Poland

The first transfer of emission reduction units (ERUs) from Poland has been made for Danish project on landfill gas recovery and utilisation. It is the first practical implementation of the ERUs under new Polish Act on the System to Manage the Emissions of Greenhouse Gases and Other Substances that is prepared by Ministry of the Environment and has provided for implementation of environmental projects in Poland by foreign partners.

The Landfill Gas Recovery and Utilization Project, Poland is developed and implemented under the Kyoto Protocol Joint Implementation (JI) mechanism between Denmark and Poland. The project comprises collection and utilisation of methane gas on 3 landfill sites in Poland: Łubna, Sosnowiec and Łęgajny. This is the real and measurable reduction bringing about long-term environmental benefits. The collected gas will be utilised for energy production thus saving both the methane outlet and the coal based energy generation. The total expected reductions of greenhouse gas emission are approximately 621,696 tonnes CO2eq by 2012. The project also covers enhancement of the landfill gas management systems through reconstruction and expansion of existing landfill gas utilisation plants. The project activities include effective combustion of landfill gas in engines and flares in the three aforementioned localities.

Implementation of such project and the ERUs transfer is possible under Act of 17 July 2009 on the System to Manage the Emissions of Greenhouse Gases and Other Substances (Official Journal No. 130, Item 1070). The same Act provides also for entering transactions to sales of the surplus of the Polish Assigned Amount Units (AAUs) under the International Emission Trading Scheme, including within overall UN System.
The Joint Implementation (JI) mechanism under Article 6 of the UNFCCC Kyoto Protocol consists in meeting the reduction commitments by the Annex I countries, i.e. which achieve reduction of greenhouse gas emission through establishment of the opportunities to emission accounting by means of implementation of environmentally sound investment jointly with and in another UNFCCC Annex I Country. In that way, the Investor-Country reduces its own emission reduction cost (as compared to that which it has to incur when implementing a domestic investment on its own) and enhances its emission cap, whereas the Host-Country (i.e. implementing a project in question, likewise Poland in this case) gains the state-of-the-art environmentally sound technology. Consequently, the Emission Reduction Units (ERUs) obtained through implementation of the JI project are transferred from the Host-Country to the Investor-Country. The ERUs may be generated in the period 2008-2012 and transferred to Annex I Countries as a means to meet in economically effective way their commitments under the Kyoto Protocol.

Minister of the Environment is responsible in Poland for approval of the JI projects under the Act on the System to Manage the Emissions of Greenhouse Gases and Other Substances.(MoE)

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ECONOMIC MONITOR

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• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
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• In 2009 construction output increased by 3.7%.
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• Retail sales increase in most product groups.
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• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
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• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
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• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
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• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
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WEEKLY MARKET ANALYSIS

Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

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