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中国与世界,环境危机大家谈 CHINA AND THE WORLD DISCUSS THE ENVIRONMENT

October 27, 2006

China continues to lead carbon market

China has emerged for the second year running as the world leader in providing greenhouse gas emission credits, said experts from the World Bank on Thursday.

China had sold emission credits for 384 million tonnes of carbon equivalent by September 10, reported Xinhua news agency. The emissions were sold under the Clean Development Mechanism.

Asia is now the main supplier of emission credits, said the World Bank's Karan Capoor  in a report on the state of the carbon market and its future development.

During the first three quarters of 2006, the emission credits contributed by Asia accounted for 84% of the world's total carbon trade volume, 60% of which was traded by China, with the average volume of each trade reaching the equivalent of 3.9 million tonnes of carbon.

China accounted for 73% of the world's emission credits in 2005. China will continue to play a leading role as it negotiates many new projects, said the report.

By October 24, 2006, the National Development and Reform Committee (NDRC) had already authorized 135 Clean Development Mechanism projects, according to official sources.

Capoor said that the reason why a few countries, including China, are succeeding in Clean Development Mechanism projects lies in their sound domestic investment environment and the scale and pattern of economic growth.

The higher the level of industrialisation in developing countries, the more opportunities those countries have for carbon reduction and the more potential China has for emissions trading, said Capoor.  

Because China has huge potential in energy conservation, rich renewable resources as well as large coal and gas reserves, the potential market for Clean Development Mechanism projects is very significant, says the NDRC in a report.