Center
Carbon emission reduction
(Xinhua)
Updated: 2006-04-11 16:28
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The United Nations pact obligates industrialized countries, except the United States, to cut their collective emissions of six key greenhouse gases like CO2 by an average 5.2 percent from the 1990 levels during the 2008-2012 period.
The CDM is a market-based financial instrument set up under the Kyoto Protocol that allows industrialized countries to invest in developing country projects and acquire greenhouse gas emission reduction credits, or carbon credits, that they can then use to fulfill their commitments under the protocol.
Japan is committed to reducing its collective emissions of greenhouse gases by 6 percent below 1990 levels during 2008-2012.
The CDM project with Juhua, the first of its kind involving cooperation between Japanese and Chinese companies, will contribute greatly toward achieving the goal set for Japan in the Kyoto Protocol.
China, a strong prospective host country for CDM projects, has ratified 25 such projects so far, according to the National Development and Reform Commission.
"The market is playing its role in helping developing countries like China deal with the dilemma of economic growth at the cost of the environment," said Zhou Changyi, an official with the commission.
Many Chinese companies have been vying for CDM projects since the country's first CDM project, a wind power plant, was launched in North China's Inner Mongolia Autonomous Region in 2002.
However, some enterprises are hesitating over the cooperation with foreign investors, given the complicated international rules, a low price for carbon credits in the world market, insufficient project development capacity, and low efficiency in energy consumption.
According to a report by the Beijing-based Qinghua University, CDM projects are expected to bring about 3.94 billion yuan (493 million U.S. dollars) of foreign investment by 2010.
Experts said the market-based mechanism injects an economic incentive into pollution-producing industries and was mutually beneficial to Chinese companies and foreign emission credits buyers.
The CDM is a market-based financial instrument set up under the Kyoto Protocol that allows industrialized countries to invest in developing country projects and acquire greenhouse gas emission reduction credits, or carbon credits, that they can then use to fulfill their commitments under the protocol.
Japan is committed to reducing its collective emissions of greenhouse gases by 6 percent below 1990 levels during 2008-2012.
The CDM project with Juhua, the first of its kind involving cooperation between Japanese and Chinese companies, will contribute greatly toward achieving the goal set for Japan in the Kyoto Protocol.
China, a strong prospective host country for CDM projects, has ratified 25 such projects so far, according to the National Development and Reform Commission.
"The market is playing its role in helping developing countries like China deal with the dilemma of economic growth at the cost of the environment," said Zhou Changyi, an official with the commission.
Many Chinese companies have been vying for CDM projects since the country's first CDM project, a wind power plant, was launched in North China's Inner Mongolia Autonomous Region in 2002.
However, some enterprises are hesitating over the cooperation with foreign investors, given the complicated international rules, a low price for carbon credits in the world market, insufficient project development capacity, and low efficiency in energy consumption.
According to a report by the Beijing-based Qinghua University, CDM projects are expected to bring about 3.94 billion yuan (493 million U.S. dollars) of foreign investment by 2010.
Experts said the market-based mechanism injects an economic incentive into pollution-producing industries and was mutually beneficial to Chinese companies and foreign emission credits buyers.