In an effort to grow the world's largest clean development
market, the Chinese government issued yesterday a regulation on new
projects using advanced technology and capital from developed
countries to reduce greenhouse gas emissions. The regulation goes
into effect on June 30.
Approved by the National Development and Reform Commission and
the Ministry of
Foreign Affairs, the clean development mechanism regulation
creates a legal foundation for the expansion of clean development
practices in China. It clearly spells out requirements and
conditions for new projects.
“It constitutes the game rules for enterprises and developed
countries getting involved in clean development mechanism
projects,” said Gao Guangsheng, director general of the National
Coordination Committee for Climate Change.
Only Chinese enterprises and companies held by Chinese partners
will be eligible to apply for clean development projects, according
to the regulation.
Priority will be given to projects aimed at improving energy
efficiency and exploring new and renewable energy sources, said
Gao.
The regulation was proposed as part of the Kyoto Protocol
adopted on December 11, 1997.
Clean development projects as described in the regulation assist
developed countries to fulfill their commitments on emission
reduction. They also provide an opportunity for China, a developing
country not bound to reduce emissions under the protocol, to
participate in the process of global greenhouse gas mitigation and
to promote sustainable development.
Industrialized countries can earn emissions credits by investing
in emission-reducing projects in developing countries.
China is the largest potential clean development market in the
world, accounting for about half the world’s total, in part because
of its heavy reliance on coal and its lack of up-to-date
energy-efficient and renewable energy technologies.
The country is seeking clean development initiatives and
assistance from foreign contributors to address climate change
through technological transfers, capacity building and public
education.
The steps taken so far include technology upgrades to raise
energy efficiency and the promotion of renewable energy to replace
conventional fuels, as well as planting trees and working to
control the impact of the human population on the environment.
China is working in this area with international agencies such
as the World Bank and the
Asian Development Bank, as well
as with a number of countries including Canada, the UK, Denmark and
the Netherlands.
Currently China has about 20 small projects covering hydropower,
wind farm, energy-free refrigeration, municipal waste incineration
for power generation and sugarhouse, waste-based organic fertilizer
production to avoid methane emission.
(China Daily June 25, 2004)