Both Jamaica and the Netherlands are signatories to this arrangement - called the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCC) - paving the way for yesterday's announcement of the sale of credits.

Under the accord - the Emission Reduction Purchase Agreement - the Corporacion Andina de Fomento (CAF), a multilateral development bank, will purchase the Certified Emission Reduction (CER) on behalf of the Netherlands government. The cost is fixed at 5.5 euros per ton of carbon dioxide saved between 2004 and December 2012.

The Wigton Windfarm Limited is owned by the Jamaican government, with the wind farm representing an investment of US$25 million.

At the signing, technology minister Phillip Paulwell said the income from the Dutch government would be secondary to the core revenure of Wigton Ltd.

"The estimated annual saving in carbon dioxide emission will be in excess of 50,000 tons," said Paulwell. "The revenue generated from the sale of CER will be secondary income for the Wigton Windfarm project."

Since it began operating last year, the farm has operated at 22 per cent of its capacity, producing 79.1 million kWh of electricity or 4.5 megawatts per day.

In the process, it has prevented 85,000 tons of carbon dioxide from being emitted into the atmosphere - i.e which would have been emitted if the equivalent electricity had been generated from fossil fuels.

The company has already earned US$585,000 JA$38 million from the sale of credits to the Dutch.

It is not clear what per cent of the credits that the farm is earning for Jamaica is being sold to the Dutch, or how many other electricity facilities in the island are building credits for Jamaica.

However, this plant is one that has been certified as Clean Development Mechanism (CDM) facility because of its proven ability to generate electricity without emitting any pollutant - among them carbon dioxide and nitrous oxide.

Paulwell said yesterday that the Wigton project formed part of "Jamaica's effort to pursue proper environmental management and at the same time ensuring sustainable development in the energy sector".

The minister characterised the signing of the agreement as "extremely significant", noting that it represented a first in Jamaica's effort to gain access to benefits under the UNFCC.
"It's an affirmative position for the uses of alternative energy," declared Wesley McLeod, general manager of Wigton.
McLeod added that the wind power "helps to diversify the nation's energy mix while at the same time satisfying the government of Jamaica's mandate to our parent company, Petroleum Corporation of Jamaica".

Under the Kyoto Protocol, each country is required to set specific greenhouse gas reduction targets, to be achieved by specific dates.

Paulwell noted that Jamaica was in a position - via the credit transfer arrangement - to assist the member countries of the United Nations to achieve the overall objective of a six to eight per cent reduction in greenhouse gas emission between 2008 and 2012.

Yesterday Maria-Teresa Szauer, director of environment at Corporacion Andina de Fomento (CAF) and Netherlands representative, said that her government was proud that the agreement was signed.

"CAF thanks the Jamaican government for their support and we are very grateful for the easy transactions that we were able to do," she said.

"It is hoped that this signing will serve as a catalyst for potential investors in alternative energy as the financial rewards are clear," said McLeod.