| Sourced From |
Climate friendly projects in China account for more than half of the credits awarded under the UN-backed CDM-scheme (Clean Development Mechanism). But because of government financial restrictions, the credits have to be sold at lower prices than could be obtained.
“It’s like a farmer selling eggs just after China began to “reform and open up”. He doesn’t know who to sell to. He doesn’t know at what price he should sell, or who, in fact, is the most reliable buyer,” Mei Dewen, general manager of China Beijing Environmental Exchange (CBEEX) tells Reuters, while pointing to India, where projects bring in higher prices per saved ton of carbon emission.
Under the CDM mechanism, carbon credits – also known as CERs (Certified Emission Reductions) – are given to industrialized nations which invest in projects that mitigate carbon emissions in developing countries.
For example, a campaign launched during the 2008 Olympics in Beijing has generated 8,026 tons of carbon credits, which have been bought at only 5 US dollars per ton – far below prices on other markets.
While the low prices are bad viewed from the perspective of Chinese suppliers, on the bright side are the global benefits, Mei Dewen adds:
“China has more carbon assets than any other country and because our CERs are much cheaper we are saving the world hundreds of billions of dollars. US, European, Chinese and Japanese emissions are all the same (to the climate) but the costs vary.”