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Forum on SHP in China vs CDM Held in Shanghai

   ---Forum on SHP in China vs CDM was held on July 14 in Shanghai. Small hydropower is a clean, green and renewable energy which accounts for more thana half of the approved Clean Development Mechanism (CDM) projects, contributing greatly to the energy-saving, emission reduction and our reaction to climate changes. The Forum aims at adapting to the latest changes of international rules and to the developing trends of the international market, exchanging the development experience in small hydropower Clean Development Mechanism (CDM), sharing achievements, building consensus in order to promote China's small hydropower jointly under the context of global climate changes, and facilitating the better and faster development of the small hydropower CDM projects. director general of Hydropower & Rural Electrification Bureau of Ministry of Water Resources Mr. Tian Zhongxing, Chief of Taihu Basin Authority Mr. Ye Jianchun presented in the meeting and gave speeches.

   Mr. Tian Zhongxing pointed out that hydropower is currently the largest renewable energy which provides 20% of the world's electricity. China has lots of rivers, and its hydropower potential and technically exploitable potential rank the first in the world. Among these, the annual power generation and the installed capacity of small hydropower accounts for about 30% of the annual power generation of hydropower. With the development of the economy, the society needs to change the energy structure and reduce the carbon emission in order to cope with global climate change. Since the Kyoto Protocol officially came into force, the Clean Development Mechanism (CDM) has been making a big progress in China. The development of CDM project for hydropower has introduced a lot of funds for the construction of small hydropower which promotes the development of small hydropower in China.

   He stressed that we should strive for initiative in the international carbon trading market and gradually change the low-end position of our CDM for small hydropower in the international carbon market and the carbon value chain. Firstly, we must strengthen the policy guidance of the small hydropower CDM project; Secondly, departments at all levels of small hydropower CDM should maintain a close relationship with CDM administration for better coordinating the development of small hydropower CDM projects; Thirdly, the industry associations, domestic carbon trading service platform and other agencies should actively build the transactions bridges for the small hydropower CDM projects and train professionals; Fourthly, the related research and academic institutions should track the changes in international rules and carry out the in-depth researches; Fifthly, we should mobilize the owners' initiative to participate in the development of small hydropower CDM projects. He hoped that through this forum, the local authorities of small hydropower will pay more attention to the guidance of small hydropower CDM projects and enhance the owners' knowledge on developing small hydropower CDM projects, so as to promote the exchanges, communication and cooperation of the involved parties and stimulate the further development of the small hydropower CDM projects in China.

   Mr. Ye Jianchun pointed out that climate change is one of the most serious problems the world faces nowadays and it has caused wide public concern in the international community. According to Kyoto Protocol which came into effect in 2005, the developed countries are responsible for a quantified emission limit which was legally binding. They can also, according to the Protocol, carry out cooperation at project level with developing countries, namely the Clean Development Mechanism (CDM) projects, to reduce the cost of domestic emission of the developed countries and to achieve its target of emission reduction. This is an innovative mechanism which plays a positive role both in promoting sustainable development in developing countries and in helping the developed countries to fulfill the emission reduction targets. Under the targets of controlling greenhouse gas emissions, China will reduce emission by 40%-45% for GDP per unit by 2020-and the proportion of non-fossil energy will reach 15%. Therefore, the promotion of circular economy, energy saving and emission reduction and fully relying on renewable energy is a must to achieve the sustainable development in China. Small hydropower is a kind of clean renewable energy and it accounted for about half of the approved CDM projects in our country. However, there still remain some external factors that restrict the process of its development, such as the long duration for application, complicated procedures, strict examination, huge amount of application funds and so on. Hence, nowadays when the issue of climate change gets increasingly heated, we are more urged to invest more capitals and technologies for the development of clean energies such as hydropower and reinforce research and discussion to explore a unique way for boosting the sound development of China's small hydropower.

   At the forum, the leaders of relative ministries and experts introduced the latest changes of CDM international rules and the developing trends of the international market, management and developing policies of China's CDM, emissions permission trading, situation and trends of hydropower CDM and so on. Foreign buyers of hydropower CDM, representatives of hydropower CDM owners and the third-party audit institutions introduced the developing situation of CDM projects and related experience. The Forum also carried out related exchanges and discussions.

   About 60 participantswere present at the forum, including leaders and experts from Hydropower Bureau and Taihu Basin Authority of Ministry of Water Resources, Department of Social Development of Ministry of Science and Technology, Institute of Global Climate Change of Tsinghua University, CDM Executive Board members, the CDM Centre of Energy Research Institute of National Development and Reform Commission, IN-SHP, Shanghai Environment and Energy Exchange, Shanghai International Consulting Co., Ltd. and guests and experts from small hydropower authorities of related provinces (autonomous regions and municipalities), research institutions and the International Hydropower Association.

   Director of HRC Ms. Cheng Xialei, and senior engineer Mr. Zhao Jianda attended the forum. (2010-07-22)



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