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WB to Fund Carbon-dioxide-discharge Reduction Project in Shanghai

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)

 

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