October 24, 2007 (XFN-ASIA) – BEIJING: China Power Investment said it has signed a carbon credit agreement with Germany’s KfW Bankengruppe involving 4 mln tons of carbon dioxide equivalent.
The credits will be purchased from China Power’s 11 wind power farms, which have installed capacity of 420,000 kilowatts.
China Power Investment has also signed carbon credit deals with France’s Total and the Austrian government, involving a combined 25 mln tons of carbon dioxide equivalent by 2012, the company said.
Under the Kyoto Protocol’s Clean Development Mechanism (CDM), clean energy projects in the developing world are permitted to sell credits to companies in developed countries, enabling the latter to meet their Kyoto commitments to reduce greenhouse gases.
A total of 62 CDM projects have been registered in China after the mechanism was launched in the country in 2005. They are expected to reduce emissions by the equivalent of 400 mln tons of carbon dioxide, and earn 2.5 bln usd should they all win approval from the United Nations Development Program, according to data from China’s National Development and Reform Commission.