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The core of the so-called Clean Development Mechanism is to allow developed countries to purchase “Certified Energy Emission Reductions (CERs)†from developing countries through investment projects. For developed countries, the cost of doing so is often much lower than the cost of implementing carbon emission reduction projects in China. For developing country CER sellers, it is also possible to achieve a stable and substantial economic gain by implementing projects. The technological transformation of additional preferential conditions. Li Jun is the person in charge of the Banba hydropower station at Dieba, Gannan Province in Gannan Province. Since hydropower generates almost no carbon dioxide emissions, they have considerable emission reductions to sell.
Due to the dramatic increase in carbon dioxide and other greenhouse gas emissions, it is one of the important reasons for global warming, sea level rise and extreme weather increase. The "Kyoto Protocol", which came into force in February 2005, stipulates that developed countries that have signed contracts must reduce their greenhouse gas emission levels by an average of 5.2% from 1990 to 2012. The CDM mechanism stipulated in the Kyoto Protocol provides these developed countries with another feasible way: to provide technology and funds to reduce emissions in developing countries. The purchase of carbon dioxide emission reductions by developed countries is due to the commitment to reduce greenhouse gas emissions such as carbon dioxide in the country. Because on a global scale, the effect is the same no matter where the emission reduction is carried out.
According to Li Jun, although the Kaba Banji Hydropower Station can only officially start generating electricity by the end of this year, they have now sold carbon dioxide emission reductions at a price of 8.6 euros per ton, and the Kaba Banjiu Hydropower Station is expected to have 53,000 tons per year. Carbon dioxide emissions reductions, then, through the sale of emission reductions, can make an annual profit of 45.58 million euros, or about 4.7 million yuan. Yesterday they have signed an intermediary agency with the name of "Chocofon Financial Co., Ltd.", which is responsible for selling emission reductions to developed countries.
It is understood that in fact, the 2002 CDM project has already entered China for the first time. In the second half of 2002, the Dutch government and the Chinese government signed a contract for China's first CDM project, the Huitengxile Wind Farm Project in Inner Mongolia Autonomous Region. According to relevant experts from the National Development and Reform Commission, China's CDM market has accounted for half of the world in 2006, and many international buyers are holding carbon indicators for future purchases. The implementation of this project will not only help developed countries achieve emission reduction tasks, but also help developing countries receive financial assistance and advanced technologies.
Chinese companies sell 8.6 euros per ton
“We are selling 'emission reductions'.†Yesterday afternoon, at the scene of the 10th Kebo Gansu Provincial Project Promotion Conference, entrepreneur Li Jun from Gansu told reporters that their contracted project was based on the Kyoto Protocol. China's Clean Development Mechanism (CDM) sells CO2 emission reductions to other companies. His company has already sold CO2 emission reductions to British intermediaries at a price of 8.6 euros per ton, and is expected to make a profit of 4.7 million yuan per year.