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China sells carbon credits

By Zhang Qi (China Daily)
Updated: 2008-04-16 09:30

Swedish energy agencies have agreed to pay a total of more than 1 billion yuan to Chinese State-owned energy producers under the clean development mechanism (CDM) project.

The CDM is under the Kyoto Protocol, which allows developed countries with a CO2-reduction commitment to buy carbon credits from developing countries.

The agreements were inked in the presence of visiting Swedish Prime Minister Fredrik Reinfeldt earlier this week.

Swedish Energy Agency and Tricorona Carbon Asset Management have signed CDM purchase 1-billion-yuan agreements with State-owned energy enterprises China Datang Corporation and Shenhua Group.

Tricorona signed a certified emission reductions purchase agreement with Guohua Wind Power Co, valued at 242 million yuan ($34.61 million).

Swedish Ministry of Enterprise, Energy and Communications and Tangshan also issued a letter of intent to build a Sino-Swedish eco-city to support Tangshan's sustainable development.

Reinfeldt emphasized the importance for both Sweden and China to reduce energy use at a press conference.

"We have shown the combination of economic growth and lower greenhouse emissions in Sweden," he said. "Since 1990, our economy has grown by 46 percent; during the same time, our greenhouse gas emissions have decreased by 9 percent."