Kansai Electric Power Co. has agreed to buy carbon credits from a Malaysian fertilizer maker to help Japan meet its emissions targets under the Kyoto Protocol.
Kepco will buy 400,000 carbon credits generated from palm oil waste by MG Biogreen by 2012, Kyoto Energy Pte., a broker that facilitated the trade, said in a statement e-mailed Monday from Kuala Lumpur.
Malaysia has 18 emission reduction projects recognized by the Clean Development Mechanism under the United Nations climate change convention.
Developing countries, led by China, India and Malaysia, could more than double carbon-credit sales to $12 billion this year as Japan and Europe try to meet a 2012 deadline for cutting greenhouse gases, a Rabobank Groep official said in May.