Financial aspects

The financial aspects differ between the participating countries

General aspects

EUA - CER - ERU prices from 2010 to 2012

In the first Kyoto perido the trading of the emission rights CER's (Certified Emission Reductions) and ERU's Emission Rights Unit) are one of the important incentives for utilisation of CMM.

In former time some mines use CMM as fuel for there own boilers to produce heat or steam. This kind of utilisation uses only a small part of the available ressource. Under special conditions a better use was established in the coal mining area in Saarland (Germany) and in Ostrava (Czech Rebublic). Here a pipeline connect the CMM production places with consumers.

In 2000 a renewable energy Law was enforceable in Germany. CMM was defined a like a renewable energy ressource. Now ther were intensives to produce power from CMM.

In 2008 the first Kyoto Period started. CMM was accepted as a green house gas. So project to reduce emissions of CMM was planned in JI and CDM countries. CER prices near to 20 Euro/t CO2 showed a great potential for CMM project. Power production and flaring give the opportunity to utilise all the collected CMM on a mine.

But for the miners methane is a hazard. Methane has to be disposed from the mine. Utilisation of this methane may reduce the efforts of degassing could be one of the proviso of the miners of this kind of project. On the other side the procedure for JI and CDM was not really installed in 2008. So it lasted often more than 3 years from the start of the project to a beginning of an installation.

Also regulation for this kind of utilisation were not really existing. In addition to the rules for the emissions projects also approvals for new investments in mining have to be developed and issued. More information about legal aspects you find here.

Country aspects

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In the following is pointed the financial situation of each country looked at. The structure of this documents is listed below. The whole report with all countries you find here: [|Country report]

1. Country Reports

1.1 Finance

1.1.1 Financial Country Rating and outlook

1.1.2 Local currency situation

1.1.3 Ability to raise project financing for the specific country

1.1.4 Price situation and outlook for competing products

2. Tax situation

3. Implementation status of Kyoto Protocol More information at Legal Aspects of CMM projects

3.1 Energy politics (preferences for sources of primary energy) and energy laws

3.2 Mining and mine safety laws

3.3 Environmental laws

3.4 Energy Laws

4. Additional requirements

4.1 Ranking

5. Conclusion

Czech Republic

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In the Czech Republic

Kazakhstan

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Coal mining in Kazakhstan is mainly done by the company AreclorMittal.

Kasakhstan

More information you find in . The information in the document is from the time 2008 or 2009.

Economic situation

Kazakhstan is the largest country to have developed from former Soviet territories. It has huge natural raw material resources, fossil fuel and minerals. Extraction and processing of these raw materials is the major focus of the economy. The main export goods are oil, gas, uranium, ferrous and nonferrous metals, machinery, chemicals, grain, wool, meat, coal. The country enjoyed an average economic growth of 8 % from 2002-2007 and slowed down to about 3 % in 2008. Capital investments in January-March 2009 amounted to 639.3 bln KZT, which is 4.9% less than during the same period of the previous year. Priority branches for investments still are coal mining, transport and communication. On May 08, 2009 Standard & Poor's revised the “Negative” rating forecast on Republic Kazakhstan into “Stable”.

For more information about economic situation in Kazakhstan for the period 2007 to 2009, including information about gross domestic product, investments, financial rating, trade and retail turnover, industrial and agricultural production, export and import, inflation rate, production costs of fuel and industrial heat, tax situation and others, see in

Energy politics (preferences for sources of primary energy)

Kazakhstan’s energy market is dominated by domestic coal. As long as domestic coal remains cheap, any success of other sources will remain low to zero. Renewables contribute only about one percent to the country´s energy balance. With the amendments to a Law on the Use of Renewable Energy Sources the first step was done to forward the alternative resources. Further information on energy politics, including information about coal production, power generation, power transmission, power supply and renewable energy sources and the status of coal mining industry you will find in

Poland

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More information about Poland you find on country information Poland

Poland

In Poland some CMM project are in preparation. Up to March 2012 one of this has got a letter of approval.

Economic situation

Since 1990, Poland has achieved a policy of economic liberalization. As well as GDP per capita is still below the EU average, it is nevertheless similar to that of the three Baltic states. EU membership in 2004 and the access to EU structural funds add to the major increase in the economy of Poland. As Poland is the EU’s largest coal producer, the economy depends a lot on coal production. Other important exports are machinery and transport equipment, foodstuffs and chemicals. Moody’s rated Poland A2 and stable in the year 2009. The currency, based on 2009 was stable. More information about the general economic situation in Poland in 2008 and 2009, finance country rating and local currency situation, you can find here 

Ability to raise project financing for Poland

Accession to the EU made many resources available for business in Poland. It made it possible for companies to obtain support in order to realize projects on different levels – small projects in regional programmes and bigger projects in nationwide programmes. The description of different programmes are presented in the following pdf

Energy politics

To increase the part of renewable energy is an important target of polish poltics.

In Poland the structure of energy sources is dominated by coal. So coal is the dominant fuel, accounting for 60.5% of primary energy demand, followed by oil and gas. Unfortunately a trend emerges, that local production will be reduced and the amount of imported coal will increase. Locally produced coal will not be able to compete with imported coal from Australia and South Africa. More information about the energy politics in Poland, especially the strategic goals to reduce power consumption are described in 

Romania

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In Romania exists only a few coal mines. As a part of the EU Romania have the financial system like the other member states.

Russia

One of the worlds largest produzer of coal is

Ukraine

Coal industry is one of the important indusrty parts in Ukraine.

United Kingdom

In the UK

Germany

In Gremany coalmining will we finished in 2018.