China firms, World Bank in $930 mln emissions deal
December 20, 2005
By Stuart Penson
LONDON (Reuters) - Two private Chinese chemicals firms and the World Bank on Monday launched the world's biggest single project to cut greenhouse gas emissions in a deal worth nearly $1 billion, the World Bank said.
The move comes as experts predict China will become the world's biggest polluter over the next 25 years, overtaking the United States as its builds hundreds of new power stations to feed its rapidly growing economy.
"The Government of China attaches a high priority to participation in global efforts under the Kyoto Protocol," said Ju Kuilin, Deputy Director General of China's International Department at the Ministry of Finance, in a statement issued by the World Bank.
"We are glad that it has been possible to bring forward this project, which we expect will make a significant contribution to these efforts, with two companies from Jiangsu Province," he was quoted as saying.
Under the $930-million contract the Chinese firms will cut millions of tonnes of emissions at chemicals plants in China's Jiangsu Province.
The reductions will earn credits that the World Bank will buy on behalf of foreign governments and firms which need extra credits to help meet Kyoto Protocol targets on reducing greenhouse gas emissions.
China has not been set reduction targets under Kyoto.
The World Bank said Jiangsu Meilan Chemical Co. Ltd., and Changshu 3F Zhonghao New Chemicals Material Co. Ltd, in Jiangsu Province are expected to achieve annual reductions of about 19 millions tonnes of carbon dioxide equivalent.
The project will focus on capturing HFC-23, one of the most potent greenhouse gases blamed by many scientists for global warming and climate change, said the World Bank.