20. Revenue from carbon emission reduction activities
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Revenue from sale of certified emission reductions (CERs) | 393 | 708 | ||
| Revenue from emission reduction activities | 393 | 708 |
The power plant BK Energia an associate of Precious Woods generates CERs (Certified Emission Reductions). BK Energia, a renewable-power-generation plant, is located in the Amazon region of Brazil. It complies with all the necessary conditions established in the Kyoto Protocol and by the UNFCCC (United Nations Framework Convention on Climate Change). Carbon emissions are avoided by substituting diesel fuel with wood waste from the sawmill and from forest operations for generation of electricity. These CERs are purchased by Precious Woods Holding. The produced CERs are recognized as inventory and valued at the lower of cost or net realizable value as long as the certification is not yet achieved, and sold afterwards.
The verification for the 46 671 CERs produced in 2014 and for the 44 050 CERs produced in 2015 was issued by UNFCCC in 2016 and they were sold by Precious Woods. The verification for the 53 540 CERs produced in 2016 was issued by UNFCCC in 2017. In 2017 51 596 CERs were produced and their verification is planned for autumn 2018.