WB to help set up carbon markets in developing nations
Friday, 10 December 2010
CANCUN, Dec 9 (Commodity Online): In order to help developing countries set up carbon markets, the World Bank opened a fund to collect $100 million.
Launching the fund here, WB president Robert Zoellick said the Bank expected a growing number of nations to look at so-called cap-and-trade systems, in which firms or countries face restrictions on carbon emissions blamed for climate change but can trade credits on the market.
He said, we have a number of countries such as China, Chile, Indonesia and Mexico actively exploring how they can use market-based instruments to support their overall domestic emissions mitigation and action plans".
World's largest carbon emitter, China welcomed the initiative and said it has set up low-carbon pilot projects in five cities and eight provinces.
China's climate negotiator Xie Zhenhua said his country intends to explore feasibility of domestic emissions trading schemes to achieve mitigation.
The World Bank partnership would help countries set up markets similar to the cap-and-trade system in place for for companies in the European Union.
The World Bank initiative would also look at systems along the line of the Kyoto Protocol's Clean Development Mechanism, under which wealthy nations required to cut emissions can receive credit by investing in green energy projects in the developing world.
Launching the fund here, WB president Robert Zoellick said the Bank expected a growing number of nations to look at so-called cap-and-trade systems, in which firms or countries face restrictions on carbon emissions blamed for climate change but can trade credits on the market.
He said, we have a number of countries such as China, Chile, Indonesia and Mexico actively exploring how they can use market-based instruments to support their overall domestic emissions mitigation and action plans".
World's largest carbon emitter, China welcomed the initiative and said it has set up low-carbon pilot projects in five cities and eight provinces.
China's climate negotiator Xie Zhenhua said his country intends to explore feasibility of domestic emissions trading schemes to achieve mitigation.
The World Bank partnership would help countries set up markets similar to the cap-and-trade system in place for for companies in the European Union.
The World Bank initiative would also look at systems along the line of the Kyoto Protocol's Clean Development Mechanism, under which wealthy nations required to cut emissions can receive credit by investing in green energy projects in the developing world.