China dominates the mkt.
China supplies more CDM credits than any other country
China leads the world in supplying Clean Development Mechanism (CDM) credits with a 60 percent market share in the first nine months this year, according to a World Bank report.
The report authored by Karan Kapoor with the Sustainable Development Department (Africa) of the World Bank said China has accounted for 24 percent of the transactions in the world so far this year, with the average transaction representing the equivalent of 3.9 million tons of carbon dioxide equivalent.
A total of 79 Chinese CDM projects had sold 384 million tons of carbon dioxide equivalent to developed countries by Sept. 10, 2006, at an average price of 7.53 U.S. dollars.
The report predicted that China would continue to dominate the market, as a number of deals are under negotiation.
China's National Development and Reform Commission (NDRC) had approved 135 CDM projects by Oct. 24, compared with about 50 in the middle of the year, said sources with the National Coordination Committee on Climate Change.
Kapoor attributed the increase of CDM projects to the overall investment climate, the size and growth of the economy and its structure.
"The more industrialized developing countries have greater opportunities for generating carbon credits," reads the report, saying that China's large emission reduction projects make it attractive.
The NDRC said in its latest report that China has great potential for CDM projects as there is ample opportunity in the country to improve energy efficiency and the nation is rich in renewable and clean energy resources.
Current projects in China include wind power, hydropower, landfill gas power generation, coal bed methane utilization, afforestation and HFC-23 decomposition.
Last year, China also held the lion's share -- 73 percent -- of the CDM credits market, followed by Brazil with 11 percent.
Under the Kyoto Protocol that came into effect in 2005, 38 industrialized countries must reduce their greenhouse gas emissions by an average of 5.2 percent below 1990 levels, during the period 2008 to 2012.
CDM is a market-based mechanism that allows these countries to fulfill their emission reduction obligations at much lower cost, by investing in clean energy projects in developing countries such as China.
According to analysts, China stands to earn billions of dollars from the CDM market.
People's Daily Online --- http://english.people.com.cn/