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BEIJING, Jul 15, 2005 -- M2 PRESSWIRE
China will reduce three million tons of climate altering greenhouse gases with the signing of an emission reductions purchase agreement under the Clean Development Mechanism (CDM) of the Kyoto Protocol. XHP consists of a 98 megawatt run-of-river hydroelectric plant located on the Heihe River in the Sunan Yugur Autonomous County of Zhangye City, Gansu Province. The project will not have a large dam or reservoir, and with little grass and almost no trees or shrubs along the river banks, the project poses minimal threat to the surrounding ecosystem. XHP is part of the least cost generation expansion plan for Gansu Province. It will produce approx 360 gigawatt hours of clean and efficient electricity to the power starved area of Zhangye City, with a population of over one and a quarter million. Scheduled to commence operations in 2006, XHP has an expected lifetime of at least 30 years. "The Xiaogushan Emissions Reduction Purchase Agreement signed on June 21st was the first Carbon Finance hydropower project in the East Asia Region, and the second agreement in China," said David Dollar, World Bank Country Director for China. "The projectepitomizes a high standard of international cooperation; it is the result of collaboration with National and Provincial Chinese authorities, the Asian Development Bank, the World Bank's Carbon Finance Business, and the regional Bank team which has diligently managed the environmental and social issues associated with project development." The greenhouse gas emission reductions generated by the project will be purchased by the Prototype Carbon Fund (PCF), a public/private partnership, made up of six governments and 17 private companies, that is managed by the World Bank. The PCF will purchase 3 million tons of greenhouse gas emission reductions from the project - 95 percent of the emission reductions to be generated. Jean Claude Steffens is Director for Environment and Innovation at the Brussels-based company SUEZ and chair of the PCF Participants' Committee. "The Prototype Carbon Fund demonstrates once more its pioneering role, building up on the commitment of Chinese authorities and project sponsors as well as on its own will to apply CDM benefits to help expand renewable energy deployment in non-Annex I countries," said Steffens. China is developing projects under the Clean Development Mechanism of the Kyoto Protocol, which came into force in February 2005, and is the 1997 international agreement to limit climate altering greenhouse gas emissions. The CDM, a flexible mechanism of the Protocol, allows OECD countries to fulfill some of their greenhouse gas emission-reduction commitments through projects in the developing world. The XHP project will provide a clean energy power source to communities that are remote and among the poorest in China. Current electricity supplies are frequently interrupted and the voltage very low. "The involvement of the PCF in purchasing emission reductions from the project has brought more benefits to our project, resulting in positive impacts on social and economical development in the area," said Mr. Ding Jianjun, Vice General Manager of the Gansu Zhangye Xiaogushan Hydropower Company. "The CDM status of this project is a great leap forward for us, and helps us to overcome barriers and access more resources to accelerate hydro developments in the project area." The XHP project will also generate employment in the surrounding region because of site maintenance and operation. The clean power generated by the XHP project will further contribute to sustainable development in the Gansu Province by providing reliable energy to investors, business, and consumers. Reliable energy will stimulate job and income growth and increased commercial activity in the environmental, health, and other sectors of the local economy. The project is consistent with the current thrust of the Chinese government to take advantage of hydropower sources in West China, hydropower sources that provide renewable energy without carbon dioxide emissions. For more information please visit: www.carbonfinance.org ANNEX 1: The Kyoto Protocol and the Clean Development Mechanism (CDM) The Kyoto Protocol provides an unprecedented opportunity for the Organization for Economic Co-Operation and Development (OECD) countries to reduce greenhouse gas emissions and at the same time help developing countries and economies in transition invest in climate friendly technologies and infrastructure. The Protocol's Clean Development Mechanism (CDM) and Joint Implementation (JI) provide an element of flexibility for the industrialized countries to meet their obligations under the Protocol to reduce greenhouse gas emissions by on average 5.2 percent below their 1990 levels by 2010. In so doing, the Protocol provides an unprecedented incentive for those seeking lower cost emission reductions, to leverage the flow of private capital and privately held clean technology from North to South. ANNEX 2: Carbon Finance Carbon finance is the general term applied to financing seeking to purchase greenhouse gas emission reductions ("carbon" for short) to offset emissions in the OECD. Commitments of carbon finance for the purchase of carbon have grown rapidly since the first carbon purchases began less than seven years ago. The global market for greenhouse gas emission reductions is estimated at a cumulative 200 million tons of carbon dioxide equivalent since its inception in 1996. Nearly 70 million tons was originated in 2002 alone. Volumes are expected to continue to grow as countries that have already ratified the Kyoto Protocol work to meet their commitments, and as national and regional markets for Emission Reductions are put into place, notably in Canada and the European Union (where trading started in January 2005). CONTACT: Anita Gordon Tel: +1 202 473 1799 e-mail: Agordon@worldbank.org Sergio Jellinek Tel: +1 202 458 2841 e-mail: Sjellinek@worldbank.org M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com . News Provided By |
