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Oct 27, 2006 -- M2 PRESSWIRE
The UK has provided a way for companies from non-Kyoto countries to participate in the global carbon market through the Clean Development Mechanism, Climate Change Minister Ian Pearson announced in Beijing today. The decision means non-UK companies will be able to participate in the UK carbon market, and creates a way for local trading schemes to be linked via the CDM. Mr Pearson also approved the first two projects under the new arrangements, which will reduce emissions in China by an average 109,922 tonnes of carbon dioxide equivalent each year between 2006 and 2012. The Clean Development Mechanism reduces emissions of greenhouse gases, contributes to sustainable development and helps developing countries gain access to investment and cleaner technologies. CDM projects must also reduce emissions over and above those that would have occurred without the project. Mr Pearson said: "I am particularly pleased that this decision will enable companies from non-Kyoto countries to participate in the global carbon market via the Clean Development Mechanism. "Under current rules, companies in places like California - the sixth-largest economy in the world - don't have a way to participate in the global emissions market and support CDM projects in developing economies. "The UK is filling that gap. We are providing a way for non-Kyoto parties to enter the international arena on carbon trading." Mr Pearson said the decision was the result of numerous representations from companies abroad. "As we are the emerging centre of the international carbon market, with 26% of registered CDM projects involving UK participants, it's not surprising that these companies have looked to the UK to provide a way for them to participate in the global market. "This will further strengthen the City's leading role in financing the global carbon market, which is predicted to be worth $40.2 billion by the end of the decade." Mr Pearson said he was pleased to have approved the first two projects under the new arrangements during the Carbon Expo in Beijing. "In this case, Climate Change Capital had a Luxembourg-based fund that wanted to participate in a CDM project in China," he said. "The fund received approval from China on the condition that the UK also approved their participation. Our decision to approve non-UK entities' participation means that these projects can go ahead, leading to savings of more than 100,000 tonnes of carbon dioxide equivalent every year." Notes to editors 1. The new arrangements will also cover UK Overseas Territories and Crown Dominions who are not already parties to the UNFCCC and the Kyoto Protocol through the UK. Participants from Overseas Territories and Crown Dominions will be able to participate subject to agreement or approval of the relevant government authority. The UK's ratification of the UNFCCC and its Kyoto Protocol currently extends to the Isle of Man, the Bailiwick of Jersey, Alderney and Sark. Other Overseas Territories and Crown Dominions are in the process of joining the UK's ratifications or deciding whether and when they will join. 2. Approved CDM projects span 15 countries, from large-scale industrial gas projects in India and China to smaller energy efficiency and renewables projects in Mexico, Fiji and Nicaragua. All CDM projects and emissions must be validated and verified by the CDM Executive Board before credits can be issued. 3. A list of projects in which the UK has approved participation are available at http://www.defra.gov.uk/environment/climatechange/internat/kyotomech/d ocuments/cdm-dna-approvals.pdf (100 KB) 4. Guidance for CDM project participants can be found at http://www.defra.gov.uk/environment/climatechange/trading/eu/pdf/cdmap proval-guidance.pdf (130 KB) 5. The Climate Change Projects Office, jointly funded by Defra and DTI, can provide help and advice to companies interested in becoming involved in the CDM and Joint Implementation project activity. More information can be found at http://www.dti.gov.uk/sectors/environmental/ccpo/page21104.html Project Details The first two projects involving investors from non-Kyoto countries to be approved by the UK are: Datang Jilin Shuangliao Wind Farm Project This project will build and operate a 49.3MW wind farm connected to the power grin in Shuangliao city, in the west of the Jinlin Province. The project will supply electricity to the Jilin Northwest Power Grid, which is integral to the North East China Power Grid. The project will reduce greenhouse gas emissions in China, help stimulate the Chinese wind power industry by demonstrating the viability of larger, grid-connected wind farms, create local employment and reduce other pollutants resulting from power generation. The project is estimated to generate 10.5 GWh each year, displacing conventional generation and avoiding the use of 37,000 tonnes of standard coal each year, and will reduce emissions by an average of 92,400 tonnes of CO2 equivalent each year. Changling Wind Power Project The Changling Wind Power project will install and operate a wind farm in Changling County in Jinlin Province, Northeast China. The total installed capacity will be 9.35 MW. With an average annual production of 20.3 GWh, the project will be able to deliver an average reduction in emissions of around 17,522 tonnes of CO2 equivalent each year between 2006 and 2012. The project will contribute to the reduction of local air pollutants as the wind farm will displace primarily coal-generated power, and will create local employment during both the construction and operation phases. There may also be tourism benefits as well as fostering local experience and expertise in developing and operating commercial-scale wind power. 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 |
