Chinese hydro plant can sell credits

The United Nations has approved a north-west China hydropower plant’s application to sell carbon credits, Reuters reported, citing the Xinhua news agency. The Bingling plant, on the upper reaches of the Yellow River in Gansu Province, becomes the biggest hydro project to do so under the Kyoto protocol’s clean development mechanism (CDM).


At the end of March, the UN’s CDM Executive Board approved the sale of 760,000 tonnes worth of “certified emission reductions” per year, according to Xinhua. Gansu Electric Power Investment, the project owner, is contracted to sell the carbon credits to its partner, the Italian energy provider Enel.


The CDM was set up to allow developed countries to meet their emissions-reduction targets by investing in clean projects in the developing world. A CDM project needs to demonstrate that it will lead to a quantifiable reduction in greenhouse gases. It also has to show that it would not have been economically viable without the additional capital generated by carbon trading.


However, critics have argued that the process has been manipulated, particularly by the owners of large-scale hydropower plants, which remain environmentally controversial. Scheduled to go into full operation at the end of September, the Bingling project will have a total generation capacity of 240,000 kilowatts.




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