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Backlog Grows in China Carbon Credit Applications
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CHINA: June 29, 2007


BEIJING - A queue is growing of Chinese energy and industrial enterprises awaiting UN approval to sell cuts in greenhouse gas emissions to rich countries.


The Kyoto Protocol allows industrialised nations to meet limits on output of greenhouse gases such as carbon dioxide by funding emissions cuts in developing countries, through a currency of carbon credits.

The Chinese government has approved 524 such clean development mechanism (CDM) projects, said Yang Hongwei, director of the Chinese government's CDM project management centre.

But only 90 projects have reached the next step of official registration by a United Nations body, a bureaucratic stamp needed to start selling carbon credits. Of those, 19 have begun operating, Yang said.

The projects that have cleared the Chinese approval process would cumulatively yield 180 million tonnes per year of cuts in carbon dioxide emissions, he estimated.

Another batch of Chinese approvals is expected in the near future, bringing the total number of projects to about 600, Yang said.

He spoke at the launch of a 2.8 million euro (US$3.8 million) European project to train Chinese firms to navigate the approval process.

A dearth of Chinese firms that can verify and validate the projects for the United Nations, as well as new types of projects in China which require the development of new methodologies, have contributed to the backlog.

"People have been concerned by the slow level of approval," said Zhang Jianyu, programme manager of Environmental Defense in China.

"But it also shows the enthusiastic interest from the Chinese side. You can look at the backlog in both ways."


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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