Vietnam will put up 350,000 emission reduction credits for sale at the first-ever auction of its kind in Hanoi this month, organizer PetroVietnam Finance Corporation said on Monday.

The project was the first ever in Vietnam to be awarded the credits, PetroVietnam Finance Corp. (PVFC) said.

The corporation said they had received more than ten letters of interest from banks and industrial organizations in the US and European Union, adding that they would be short-listed for the auction based on their capacity.

CDM allows industrialized countries with greenhouse gas reduction commitments to invest in projects that reduce emissions in developing countries as an alternative to enabling more expensive emission reductions in their own countries.

When a country succeeds in reducing one metric ton of greenhouse gas, it would be granted a CER, or Certified Emission Reduction.

Developing countries then can transfer or sell CERs to industrialized countries, which helps the latter increase their emission quota, while helping developing countries reduce greenhouse gas and raise capital through the sale.

A CER in Europe now costs between 13-14 euros.

Vietnam is expected to earn some US$250 million from CDM projects by the end of 2010, according to environmentalists. However, due to strict CDM project registration requirements, not many projects have been conducted here.

Source: VNA