Ireland and the World Bank have entered into an agreement with Poland to purchase its carbon emissions rights, a move that will allow the country to invest in sustainable energy.

Ireland has signed a letter of intent to buy Poland's carbon emission allowances worth €15 (zł.59.5) million, while World Bank signed a separate deal to purchase 10 million tones of emissions. According to a source that's familiar with the transaction and who did not want to be named, "The price is around €10 (zł.39.6) a tonne."

Under Kyoto, nations that are far below their emissions targets may sell excess quotas to other countries under the Assigned Amount Units (AAUs). Although Poland relies heavily on coal, World Bank said in a statement that Poland has a surplus of AAUs, since its greenhouse gas emissions have been decreasing since 1990.

Meanwhile, the proceeds from the deals allow Poland to invest in energy efficiency and renewable energy projects, which will be co-financed by the European Bank for Reconstruction and Development and the European Investment Bank.

Source: Reuters