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Posco Registers Afforestation Business with UN
12/13/2010 - Posco registered the CDM (Clean Development Mechanism) business with the United Nations Framework Convention on Climate Change to earn carbon credits through the Uruguay local afforestation. For this project, Posco Uruguay was established in February 2009.
Posco registered the CDM (Clean Development Mechanism) business with the United Nations Framework Convention on Climate Change (UNFCC) to earn carbon credits through the Uruguay local afforestation.
Posco says it is the first domestic company to register afforestation carbon credit, 18th globally, and the first among steelmakers.
During the December 2008 Board of Directors Meeting, Posco decided to invest 55 million USD in Uruguay to purchase 20,000 ha of afforestation land to carry out the carbon credit project. For this project, Posco Uruguay was established in February of 2009.
Posco Uruguay first purchased approximately 1000 ha of land in August last year and planted approximately 880,000 Eucalyptus trees to date as sample planting to check feasibility.
Prior to the UN CDM project registration, Posco hosted a public hearing for stakeholders in Uruguay’s capital, Montevideo.
After receiving the Uruguay’s government approval this year, Posco registered for the carbon credit project to the UNFCC.
Posco says that test planting results showed that Uruguay’s afforestation environment is excellent compared to other countries. There are approximately 4 million ha of afforestation encouragement land, and many afforestation specialized companies exist. Trees grew more than 2.5 m after one year. Corporate and property taxes are exempted for afforestation companies.
Posco plans to purchase an additional 19,000 ha of land by 2013, expanding the total scale to 20,000 ha. This means the afforestation land equivalent to approximately one-third of Seoul will be secured, reducing 200,000 tonnes of carbon-dioxide per year, according to Posco.
