The Chinese and Italian governments have begun working together
to reduce greenhouse gas emissions with the creation of the Italian
Carbon Fund, which will help develop emission reduction projects in
China and combat climate change.
A presentation was held in Beijing at the weekend for the launch
of the fund, from which Chinese private- or public-sector entities
can apply for financial support. Projects will focus mainly on
energy services and technologies.
Last autumn, the World
Bank entered into an agreement with Italy to create a fund to
purchase greenhouse gas emission reductions for projects in
developing countries and countries with economies that are in
transition. The projects must generate emission reductions eligible
under the Kyoto Protocol’s Clean Development Mechanism (CDM) and
Joint Implementation (JI).
The fund is a public-private partnership
administered by the World Bank. It has an initial endowment of
US$15 million provided by the Ministry for the Environment and
Territory of Italy.
Corrado Clini, a senior official with the Italian ministry, said
Sino-Italian links in developing CDM projects are beneficial to
both parties, and that China has huge potential for reducing
greenhouse gas emissions.
Italy has participated in several international carbon funds in
the past and is now seeking project partners. But CDM projects have
not been launched in China on a large scale so far, because Chinese
enterprises do not have a clear understanding about carbon funds
and how they operate.
The CDM is designed to help generate both cost-effective
greenhouse gas controls and sustainable development benefits for
developing and developed countries. It was established in Kyoto,
Japan, in December 1997, when more than 150 nations signed the
Kyoto Protocol.
The Italian Carbon Fund is helping to change the emission
reduction market by bringing carbon finance to China: linking
buyers of carbon credits with climate-friendly projects that are in
sore need of capital.
“The bank is actively engaged in expanding these opportunities
in discussions with other potential carbon buyers, both public and
private,” said World Bank Senior Environmental Specialist Andrea
Pinna.
(China Daily May 24, 2004)