Chinese renewable energy project has benefited from the Clean
Development Mechanism, a key feature of the Kyoto Protocol, despite
China's refusal to join other Kyoto signatories in accepting binding
This time, its a Chinese hydro-electric power project which has sold
more than 692,000 carbon credits at an auction by the Asia Carbon
Exchange in Singapore. They changed hands for €10.40.
The credits allow companies in the industrialised world to offset their CO2
emissions by buying credits from developing nations. Like similar
transactions that have benefited Chinese renewable energy and
environmental projects, these credits have yet to be issued.
Instead, they will be generated by the project owners over the course of the Kyoto commitment period from 2008 to 2012.
ACX claims to be the only the exchange market place for the trade in
carbon credits. All other transactions are bilateral trades directly
negotiated between buyer and seller.
Hydro-electric power is one of the oldest forms of renewable energy
but it has lots of critics, not least in China where the social and
environmental costs associated with the mammoth Three Gorges dam
(pictured) have given HEP a bad name.