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Fund to help combat gas emissions
By Fu Jing (China Daily)
Updated: 2004-05-24 10:18

The Chinese and Italian governments stepped closer to a reduction of greenhouse gas emissions at the weekend with the creation of the Italian Carbon Fund, which will help develop environmentally friendly projects in China and combat climate change.

A presentation was held in Beijing for its launch. China's private and public sectors can apply for financial support from the fund, which will mainly focus on energy services and technologies.

Last autumn, the World Bank entered into an agreement with the Ministry for the Environment and Territory of Italy to create a fund to purchase greenhouse gas emission reductions for projects in developing countries and countries with economies that are in transition, which is recognized under such mechanisms as the Kyoto Protocol's clean development mechanism (CDM).

The fund has an initial endowment from Italy of US$15 million.

Corrado Clini, a senior official with the Italian ministry, said Sino-Italian links in developing CDM projects are beneficial to both sides.

Clini said China is a country with big potential in greenhouse gas emission reduction, and Italy has participated in several international carbon funds in the past. It is now seeking project partners.

But CDM projects have not been launched in China on a large scale so far, because Chinese enterprises do not have a full understanding about carbon funds and how they operate.

CDM, an important policy, is designed to help generate both cost-effective greenhouse gas controls and sustainable development benefits for developing and developed countries.

It was established in Kyoto, Japan in December 1997, where more than 150 nations signed the Kyoto Protocol.

The Italian Carbon Fund, now under the name of the World Bank, is helping to change the emission reduction market by bringing carbon finance to China - linking buyers of carbon credits with climate-friendly projects that are in bad need of capital.

"The bank is actively engaged in expanding these opportunities in discussions with other potential carbon buyers, both public and private," said World Bank official Andrea Pinna.

 
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