The World Bank and 11 private firms agreed to pay two Chinese chemical companies $1.02 billion to cut emissions by some 19 million tons of carbon dioxide per year. Three-fourths of the money will be shouldered by European and Asian corporations, which seek to meet their commitment under the Kyoto Protocol. Joelle Chassard, who heads the World Bank’s carbon finance unit, believes the deal constitutes “a very positive development,” as it demonstrates China’s commitment “to do something about climate change.” China, the world’s second largest emitter of greenhouse gases, is not bound by Kyoto rules as it is classified as a developing country.
Sources:
World Bank logs largest ever greenhouse gas deal (Reuters)
Biggest-Ever Emissions Trades: $1 Billion Deal Benefits Beijing (The Wall Street Journal)