China's efforts to reduce greenhouse gas emissions are shifting,
say experts, from a focus on easier targets to addressing the more
challenging tasks.
The country initially concentrated on controlling HFC23, a gas
with possibly the highest-known greenhouse effect. But it was an
easier problem for China to tackle as it got more funding to do so
from developed nations under the Kyoto Protocol.
When HFC23 was no longer the biggest challenge, the country
turned to its use of renewable energy and increasing energy
efficiency - often at its own cost.
Of China's 72 clean development mechanism (CDM) projects, which
the National Development and Reform Commission (NDRC) approved in
June, not a single one involves cutting HFC23 emissions. The NDRC
is China's designated authority to handle CDM under the United
Nations Framework of Climate Change Conference.
The biggest two CDM projects to reduce greenhouse gas emissions
and mitigate climate change involve Anshan Iron and Steel Group
Corporation, based in northeast China's Liaoning Province. The
company plans to cut more than 3 million tons of carbon dioxide
(CO2) equivalent annually by adopting combined circle power plant
(CCPP) technology.
Wuhan Iron and Steel Group Corporation, based in central China's
Hubei Province, plans to cut 1.5 million tons of CO2 equivalent
annually using the same technology.
The Kyoto Protocol allows industrialized nations to meet limits
on output of greenhouse gases such as carbon dioxide by funding
emission cuts in developing countries through a currency of carbon
credits.
Greenhouse gases - including CO2s, CH4s, N2Os, HFCs (including
HFC23), PFCs and SF6s - have become intangible goods in
international trade.
HFC23 is a by-product of HFC22, a substitute for the old,
ozone-damaging refrigerant CFC. Although not toxic or a pollutant
in itself, HFC23 has a heat-trapping feature and is 11,700 times
stronger than CO2 in terms of the greenhouse effect, scientists
say. In carbon credit trade, its price is 11,700 times that of
CO2.
Of the Chinese CDM projects, HFC23 control could represent
nearly 40 percent of the total. "HFC23 control projects not only
have climate benefits but limited social and environmental
benefits," says Zhang Jianyu, a visiting scholar at Tsinghua
University.
The CDM was introduced mainly for technology transfer from
developed countries to developing countries on greenhouse gas
emission reduction and sustainable development, Zhang says. But the
HFC23 projects were just a business with little technology
transfer, he says.
"The HFC23 control projects are not among the priorities of the
CDM in China," he says.
Gao Guangsheng, director of the National Climate Change Office
under the NDRC, says it is unfair to criticize China for profiting
from its CDM projects, mainly from HFC23, because a larger part of
the project costs are paid for by Chinese companies with government
subsidies.
Gao says that cutting one ton of CO2 emissions by developing
wind power costs US$2. But the CDM project payment only covered 5
cents - the rest was paid by local partners.
Yang Hongwei, director of the CDM Project Management Center
under the NDRC, says: "With more projects to be registered and
certified by the United Nations, China's HFC23 projects will only
go down." But of China's 600 projects, only 90 have registered with
a United Nations agency.
Chinese industry says the country lacks designated operational
entities (DOEs), accredited to oversee the CDM projects.
According to Zhang Ning, manager of New Business Development at
German company TUV Rheinland Co's Beijing office, one of 18
qualified DOEs worldwide, the language barrier is one of the
biggest obstacles for Chinese agencies wanting to become DOEs.
"A DOE needs to prepare mountains of documents for the UN CDM
body, which has a critical requirement on English language," he
says.
Yang estimates China's 600 projects could yield 180 million tons
of CO2 emission cuts every year.
(China Daily July 9, 2007)
