Omnia to endorse Kyoto protocol
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
JSE Code: OMN
ISIN: ZAE000005153
(`Omnia` or the `Group`))
OMNIA TO ENDORSE KYOTO PROTOCOL
Omnia, a specialist chemical services company providing customised solutions in
the agriculture, mining and chemical markets, today announced its intention to
apply to become eligible for emission reduction projects under the Kyoto
Protocol which came into effect on 16 February 2005.
In terms of the Protocol, industrialised countries are given limitations on the
amounts of greenhouse gases (GHGs) they can emit. The Clean Development
Mechanism (CDM) is a tool adopted by the Protocol that allows developing nations
to sell carbon credits to the industrial sector, which uses these carbon units
(usually traded in tonnes) to offset the carbon emissions that it produces.
The Kyoto Protocol requires that all CDM-projects be subjected to validation and
verification/certification by an operating entity, i.e. an approved third party
verifier. The companies are then responsible for implementing the registered
monitoring plan and calculating the emission reductions.
Omnia Fertilizer has started preparing its Sasolburg plant to decrease its
greenhouse gas emissions by between 500 000 to 600 000 tons per year. This is
in line with the Group`s commitment to sustainable development and its continual
improvement in environmental matters. This could potentially generate between
R80 and R100 million in revenue, based on today`s Euro22.47 a ton projection of
CERs. These units can be traded like other commodities and the price is likely
to depend on supply factors and will therefore vary from day to day.
The majority of industrialised countries that have signed up to the Kyoto
Protocol have committed to reductions in their collective greenhouse gas. The
European Union is due to initiate its carbon-trading programme in 2005, and will
possibly allow for the use of carbon credits from countries outside the Union.
Almost all the industrialised countries have committed to reductions in their
collective greenhouse gas emissions by 2008-2012. The penalty is Euro40 a ton of
carbon dioxide emitted from next year to 2008. This rises to Euro100 per ton
from 2008.
Johannesburg
16 August 2005
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 16/08/2005 09:00:06 AM
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