China Longyuan Power, Electricite de France sign carbon credit deal

China Longyuan Power Group Co said it has signed an agreement with Electricite de France, under which the French group will buy carbon credits for 9 mln tons of carbon dioxide equivalent.

The credits will be purchased from Longyuan's wind power operations, which have an installed capacity of 945,000 kilowatts.

As a theoretical alternative to a coal fired generator with similar output, the wind unit saves about 9 mln tons of carbon dioxide equivalent a year.

Under the Kyoto Protocol's Clean Development Mechanism (CDM), clean energy projects in the developing world are permitted to sell credits to companies in developed countries, enabling the latter to meet their Kyoto commitments to reduce greenhouse gases.

A total of 62 CDM projects have been registered in China after the mechanism was launched in the country in 2005. They are expected to reduce emissions by the equivalent of 400 mln tons of carbon dioxide, and earn 2.5 bln usd should they all win approval from the United Nations Development Program, according to figures from China's National Development and Reform Commission.