Haifa Chemicals signs emission trading agreement with Citi

Haifa Chemicals and Citi have announced a long term agreement to sell credit emission reduction of greenhouse gases. According to Haifa Chemicals, the agreement will increase its revenue by more than $60 million. The agreement was signed in London between Citi�s Commodity Trading Desk and Haifa�s management, headed by CFO Tamir Kadishi.

Trading in greenhouse gases Emission Trading is growing at a double-digit rate and turning over tens of billions of Euros annually. This new area of trade is based on the requirement of the Kyoto Protocol, which obligates developed countries to reduce their emissions according to assigned quotas. Factories that contribute to reduction of emission of greenhouse gases can receive credit from the United Nations for this reduction and sell it to a factory that does not succeed in reducing its emissions to the allocated quota.

Neil Corney, Managing Director and Citi Israel treasurer, said, �This is only one of a number of transactions that Citi has lead in Israel and it is one of the largest carried out so far in the Israeli market.�

Haifa Chemicals CEO Nadav Shachar said, "Haifa Chemicals has set for itself a strategic target for reducing greenhouse gases. We all share the responsibility for the future of planet Earth and I hope that more companies and other production facilities will follow Haifa Chemicals path and join this global effort".

Haifa Chemicals produces and markets specialty fertilizers, food additives, and technical chemicals.

Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2009