Funds News
- Emission-cutting fund to reap up to $3b
Date: 12-Nov-2007 Sources: (Shenzhen Daily)
CHINA could have as much as US$3 billion coming to a State-owned fund that supports emissions-reducing ventures, if a slate of projects on its books win U.N. approval, the Finance Ministry said Friday.
As of last month, China had approved 885 projects, which would prevent emissions equivalent to 1.5 billion tons of carbon dioxide and generate credits worth US$15 billion.
'Out of that, the State can take US$3 billion to use for the Clean Development Mechanism (CDM) fund,'the Ministry of Finance said in a notice on its Web site that announced the official launch of the fund.
The CDM is part of the Kyoto Protocol. It allows rich nation polluters to fund emissions-cutting projects in the developing world in return for credits to put towards domestic quotas.
The government levies a fee on all CDM projects and has said it will use the cash to support activities to tackle climate change, from raising public awareness to mitigation and adaptation projects.
Managed by the Ministry of Finance, the fund appears to be profiting from China's dominant position in the CDM market, which the World Bank estimates was worth about US$5.5 billion in 2006.
China is set to overtake the United States as the top emitter of carbon dioxide as early this year, the International Energy Agency has said, although on a per capita basis they are just a fraction of Western levels.
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