June 9, 2011 / 1:10 PM / 8 years ago

Dong Energy closes CO2 offset origination desk

* No details on staff reductions, size of project portfolio

* Fuel mix changes in power production will meet CO2 caps

LONDON, June 9 (Reuters) - Danish utility Dong Energy [DONG.UL] has decided to close its carbon offset origination desk because its own low-carbon strategy is enough to meet emissions caps, it said on Thursday.

No details were immediately available on how many staff will be reduced or on the size of the company’s project portfolio.

As part of company strategy, Dong is focusing its power generation on offshore wind farms and biomass and natural gas instead of heavy-polluting coal, it said in a statement.

“The consequence of this substantial change in the generation portfolio is a decreased need for own sourcing of carbon credits through projects,” Dong said. “The engagement in existing projects and funds will continue unchanged,” it added.

Under the U.N.’s Clean Development Mechanism, companies can invest in clean energy projects in developing countries and are rewarded with carbon offsets. A certain number of those can be used to meet EU emissions caps.

Dong has been active in U.N. carbon credit markets since 2005. (Reporting by Nina Chestney)

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