The World Bank will likely spend no less than US$3.6 million to
help a sludge treatment plant in Shanghai, the largest metropolis
in eastern China, reduce carbon dioxide discharge by 600,000 tons,
according to informed sources of Shanghai.
According to the preliminary letter of intent signed between the
WB and the Shanghai Urban Water Drainage Co., the bank will act as
an authorized trustee of the Prototype Carbon Fund, or PCF, and buy
a 600,000-ton reduction in carbon dioxide discharge of the Shanghai
Bailonggang Sludge Treatment Plant.
According to the Kyoto Protocol, developed nations may cooperate
with developing ones in the reduction of greenhouse gas discharge
through providing money and technology.
Such a project is called carbon financing.
If the Shanghai deal is made, it will be the world's first
carbon financing project in sludge treatment.
(Xinhua News Agency December 12, 2005)