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Special fund proposed for green effort

By Fu Jing and Si Tingting (China Daily)
Updated: 2008-11-07 09:02

The Tianjin Climate Exchange (TCX), a joint venture of US-based Chicago Climate Exchange, China National Petroleum Corporation Assets Management Co Ltd and Tianjin Property Rights Exchange, launched last month. TCX, which will initially focus on trading major pollutants such as sulfur dioxide, is part of China's green efforts. [China Daily]

A senior Chinese official called on the international community to set up a special fund under the United Nations framework to ensure that developed countries help their developing counterparts cope with climate change.

Zhang Ping, minister of the National Development and Reform Commission (NDRC), said no substantial progress had been made by developed countries in the transfer of climate-friendly technologies to the developing countries on favorable conditions despite repeated promises to do so in international agreements.

"The transfer of technology to developing countries on favorable conditions is the obligation of developed countries," Zhang told China Daily in an exclusive interview prior to today's international forum on climate change-related technology transfer.

Zhang said that, under the Convention on Climate Change and the Kyoto Protocol, "developed countries should establish a fund to stimulate the development and transfer of climate-friendly technology".

The Chinese government has paid great attention to setting up a platform to facilitate technological transfers as part of global efforts to fight climate change.

Premier Wen Jiabao is scheduled to deliver a speech at the two-day forum jointly organized by the UN and the Chinese government.

Representatives of 76 countries, as well as a number of international organizations, are taking part in the event.

In addition, Zhang proposed the setting up of a specialized organization and an evaluation mechanism under the Conference of the Parties (COP) to United Nations Framework Convention on Climate Change (UNFCCC) to provide policy support and supervision so developed countries can fulfill their commitments.

"We must depend on joint efforts and global cooperation to address climate change, and governments in all countries should play a bigger role in tackling obstacles to this international cooperation," said Zhang.

He said certain incentives have to be given to mobilize the private sector and the entire market, so developing countries can gain access to environmentally friendly technology at an affordable price.

Last year, the Chinese government invested a total of 48 billion yuan in energy conservation, renewable energy projects and forestation, according to an NDRC report.

China's energy consumption has been reduced by 147 million tons of standard coal equivalent from 2006 to 2007 and CO2 emissions have been reduced by 335 million tons during the two years.

However, Zhang said that China, as the world's second-largest energy consumer and the world's biggest developing country, could not put an immediate end to its dependence on coal and gas to power its growth.

"For a long period of time, that is the reality we must face," Zhang said. "But we want to use them and develop our economy in a cleaner way."

China aims to reduce energy consumption per unit of GDP by 20 percent by 2010 and will strive to make further reductions in the future, he said.

Zhang also said even as the world tackles the financial crisis, China and the rest of the world should continue to adhere to the sustainable development model and fight climate change.

"We should fight the financial crisis and climate change at the same time," Zhang said.