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August 30, 2006
World Bank brokers largest ever greenhouse gas deal
The World Bank has put together the largest greenhouse gas deal ever, whereby a consortium of partners that includes European and Asian companies will pay two Chinese chemical companies US$1.02 billion to reduce output of gases believed to cause global warming.
As part of the deal, European and Asian companies bound by the UN's Kyoto Protocol to tackle climate change, will pay the Chinese chemical companies to reduce and destroy emissions of HFC23, a heat-trapping gas 11,700 times stronger than carbon dioxide.
The deal, made on Tuesday, will reduce emissions by about 19 million tons of carbon dioxide equivalent annually, according to the World Bank.
About 75% of the money to purchase the reductions came from private capital, it said.
Tuesday's deal was done under Kyoto's Clean Development Mechanism (CDM), which allows rich countries to meet some of their greenhouse gas reduction obligations under the Kyoto Protocol by investing in reductions in developing countries.
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