Gujarat gains after winning 1.9 million carbon credits from UN

Gujarat Fluorochemicals Ltd., an Indian maker of refrigerant gases, rose after winning United Nations carbon credits for the second time this year following an 11-month dry spell amid a probe of emission-reduction projects.

The shares gained as much as 6.9 percent to 274 rupees and traded at 263.7 rupees, up 2.9 percent, as of 10:34 a.m. local time. The benchmark Sensitive Index fell 1 percent.

Gujarat Fluorochemicals gets the credits because it prevents its plant in Ranjitnagar in Gujarat state from venting hydrofluorocarbon-23, or HFC-23, a by-product of refrigerant production and potent greenhouse gas, into the air.

The shares rose to a three-year high on Jan. 18 after the UN Clean Development Mechanism, the world’s second-biggest greenhouse gas market, issued 2.4 million credits to the company. Prior to that, Gujarat Flourochemicals hadn’t received credits since Feb. 16, 2010, amid a UN review of HFC projects after the environmental group CDM Watch said some companies may be increasing HCFC-22 output simply to generate credits.

The price of one UN credit, known as a Certified Emission Reduction, for delivery in December 2011 closed at 11.76 euros ($16.20) a metric ton on the ICE Futures Europe Exchange in London yesterday.

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