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The Clean Development Mechanism (CDM) will aid China in introducing capital and advanced technology, and enhancing efficiency of energy use, experts said yesterday at an international CDM conference.

The conference was held yesterday in the China Hall of Science and Technology in Beijing to study and seek comments from key stake holders in government and donor agencies on the recommended small-scale CDM in the energy sector.

CDM, an important policy, is designed to help generate both cost-effective greenhouse gas control and sustainable development benefits for developing and developed countries.

It was established in Kyoto, Japan in December 1997, where more than 150 nations signed the Kyoto Protocol that sets national emission targets for developed-country signatories and promotes mechanisms for international co-operation to promote cost-effective green house gas abatement and sustainable development in both developed and developing countries.

China has been a consistent and active participant in relevant international activities regarding climate change, including development of CDM.

In August 2002, China approved the Kyoto Protocol, and the National Development and Reform Commission was named the designated national authority for CDM in China.

In October 2002, the Asian Development Bank provided financial support for the Ministry of Science and Technology of China to launch and carry out the CDM project, which aims to improve the global environment by reducing greenhouse emissions from the energy sectors in China.

The project's objectives are also to identify and develop small-scale CDM project opportunities in Northwest China's Gansu Province and South China's Guangxi Zhuang Autonomous Region, propose policies and strategies to promote investment in small-scale CDM energy projects and develop a handbook and guidelines to assist key participants in the process of developing, financing and implementing small-scale CDM project activities in China.

The projects in Gansu and Guangxi are mainly focused on renewable energy and energy efficiency.

The projects are expected to reduce carbon dioxide emissions by about 15-25 million tons annually in the two areas after the CDM project is fully implemented.

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