Endesa deal will see firm earn credits for clean energy projects
China Huaneng Group, parent of the nation's largest listed power producer by capacity, is to sell rights to greenhouse gas emissions to Spanish energy firm Endesa for 200 million yuan annually.
The agreement involves three wind power and five hydropower projects, whose construction can qualify them for tradable carbon emission reduction (CER) units.
Polluters in certain emerging market countries can earn the units under the Kyoto Protocol to the United Nations Treaty on Climate Change by building projects that cut the emission of gases causing a greenhouse effect.
Mainland firms wishing to earn CER units require approval of the related projects from the National Development and Reform Commission and the UN.
Polluters in developed nations, bound by the climate change treaty to reach certain emissions reduction targets, can buy the units in lieu of cutting emissions themselves under a system administered under the Clean Development Mechanism (CDM) programme.
