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China has taken great efforts to save energy and reduce carbon emissions. The 12th Five-Year Plan sets a goal for the country to reduce its carbon emissions by a further 17 percent on 2010's emissions. And China has started carbon trading to achieve this.
A private-funded hydropower plant has been set up this year in Minhou County, Fujian Province. However, construction work alone has exhausted the plant's funds. As hydropower is a form of clean energy, the company sold its carbon emission reductions to a Swedish company. In this way, the power plant has raised enough money to resume operation and maintenance.
Hu Jinwei, chief of Wangyuan Hydropower Plant Program, said, "We get loans from Industrial Bank before we receive the money from overseas. The loan would help us a lot."
This hydroplant is just one of many companies benefiting from the Clean Development Mechanism. Born at the Kyoto Conference, the mechanism allows both developed and developing countries to transfer or acquire each other's emission reductions. This is an important part of Beijing and Shanghai's Environment Energy Exchanges' operations.
Bin Hui, deputy general manager of Shanghai Environment Energy Exchange, said, "Based on statistics here, tradings related to Clean Development Mechanism account for 90 percent of all."
China aims to set up national carbon trading zones in seven cities, including Beijing, Tianjin and Shanghai. It will encourage volunteer participation. At the completion of the 12th Five-Year Plan, China will have its own carbon trading system.