Carbon markets essentially put a price on carbon, which is seen as a
possible key weapon against climate change. Consequently, carbon trade
allows those companies that have already cut emissions under a set
limit to sell credits representing the reductions to slower-moving
players. This is seen as an efficient way to stimulate clean
technologies, with the intention of slowing and then decreasing global
emissions.
Mainland Chinas biggest producer of oil, PetroChina Co. Ltd. (PTR),
announced today the initiation of Chinas largest carbon trade.
The company's first clean development mechanism project 'a nitrous
oxide decomposition project by Liaoyang Petrochemical Company,
according to chinacsrt' has been approved by the United Nations CDM Executive Board.
The UN CDM BOARD gave PetroChina the ok to trade its carbon indicators equaling a little less than 1 million tons. The
Clean Development Mechanism [CDM] is an arrangement which allows
industrialised countries to invest in projects that reduce emissions
limits by investing in clean projects in developing countries.
The Petrochemical Co. has a capacity of 140,000 tons of oxalic acid,
with nitrous oxide emission of over 40,000 tons each year whose
greenhouse effect is 310 times greater than carbon dioxide. Once
emission reduction devices will be put into use, the NO2 will be
transformed into oxygen and nitrogen.
Canadian NAM and Goldman Sachs (GS) are among the buyers of carbon credits obtained through this CDM project. In
2007 Asia & Pacific accounted for 80% of carbon trade volume in the
CDM market. New projects in Asia have increased dramatically, with
China accounting for 51% of the worlds CDM carbon emission credits.
Carbon
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