WB launches emerging carbon market drive
CANCUN, MEXICO: The World Bank launched an initiative to help emerging and developing countries set up carbon markets, inaugurating a fund that it hopes will reach 100 million dollars. The World 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.
"We are launching this partnership for market readiness to try to share information but also provide some additional financial support," World Bank president Robert Zoellick announced on the sidelines of UN-led climate talks in Cancun, Mexico.
"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," Zoellick said.
China's climate negotiator Xie Zhenhua welcomed the initiative, saying that his country --the world's largest carbon emitter --has set up lowcarbon pilot projects in five cities and eight provinces.
"China intends to explore feasibility of domestic emissions trading schemes to achieve mitigation," Xie said in a statement.
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. -PB News