EMISSIONS TRADING AND CDM IN CHINA

Environmental Protection and Domestic Emissions Trading

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Legislation for environmental protection

-State Council in 1973 – Regulations on the Protection and Improvement of the Environment -Environmental Protection Act in Sept. 1979 -Minister entered the Cabinet by 03/30/2008

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Domestic emissions trading -Dr. Daniel Dudek’s visit in 1991 -Shanghai legislature in 12/1994 -ET introduced -PRC EPA in 04/2001 – ET on a national level -First transaction made in 09/2001: in Nantong,

Jiangsu re 1,800 tSO2.

CDM: Basic PRC Rules

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DNA: NDRC

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Reviewing agency: National Climate Change Coordination Group

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Operating offices: National CDM Projects Review Council; CDM Office

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Approval process: 1197 projects approved by 03/26/2008

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Proceeds sharing with project owners: -65% of HFC and PFC projects -30% of N2O projects -2% of other projects

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Rule against proceeds sharing by consultants:

Recent Developments

† State Plan to Deal with Climate Change: 06/04/2007

-commitment to cut energy consumption per unit of GDP by 20% by 2010 in relation to the 2005 level -commitment to make renewable energy 10% of all energy supplies

by 2010

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China CDM Funds: 11/09/2007 -share from CDM income -loans from World Bank and European Investment Bank, etc.

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Emissions Trading Centers -Tianjin: JV between Sinopec and CCX (Chicago Climate Exchange) -Beijing: Working with EU ETS (Emission Trading Scheme)?

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AEs for DOE accreditation: -China Environmental United Certification Center Co., Ltd, (CEC) -China Quality Certification Center, CQC -Dahua Engineering Management Group Ltd. (DEM) -Tsinghua Coway International Techtrans Co., Ltd.

THANKS

Ocean Plaza, Suite 412
Eric J. Jiang, Partner	158 Fuxingmennei Avenue
	Beijing 100031, China
JURISINO LAW GROUP	Tel: 86 10 6649 3399
	Fax: 86-10-6649-3398
	Email: eric.jiang@jurisino.com