Shearman & Sterling has advised East Asia Power (Xiamen) Company Ltd, a subsidiary of Pacific Oil and Gas, on the sale of certified emission reductions to be generated under the UN Kyoto Protocol’s Clean Development Mechanism regime. Swiss buyer Mercuria Energy Trading SA is purchasing the credits.

East Asia Power (Xiamen) Company Ltd intends to generate the carbon reduction credits over a seven-year period at its less carbon-intensive Fujian Xiamen Dongbu natural gas-fired plant.

Emission reduction credits certified under the Kyoto Protocol’s Clean Development Mechanism regime are freely tradable and may be used to satisfy emission reduction targets under the Protocol itself and in the European Union Emissions Trading System under certain circumstances.

The Shearman & Sterling team in the firm’s London office was led by Environmental Counsel Mehran Massih.