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Chen Huan

China CDM Fund

Session 16, Manila June 23, 2011

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Business Progress of

China CDM Fund

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Climate Change Policies in 12th Five-Year Plan

12th Five-Year Plan period (2011-2015) binding targets

CO2 emission/GDP reduction by 17% from 2011 to 2015, firstof its kind in national five-year plans;

Energy consumption/GDP reduction by 16% from 2011 to2015, based on 19.8% reduction achieved from 2006-2010;

Increase ratio of Non-fossil energies to 11.4% by 2015 in theenergy mix;

Increase forest cover rate to 21.66% (incremental forestryarea 12.5 million hectares), and increase forest stockingvolume to 14.3 billion m3.

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Climate Change Policies in 12th Five-Year Plan

General measures of GHGs emission control Promote industrial structure and energy mix;

Energy saving and energy efficiency;

Forest carbon sink;

Low-carbon technology and products standard, mark and verification;

Domestic emission trading

General measures of adaptation

make National adaptation overall strategy;

Enhance research and observation on climate change;

Take climate change into consideration when planning and implementingproductivity layout, constructing infrastructures and key projects;

Improve capacities of adapting to climate change and encountering tonatural disasters.

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Climate Change Policies in 12th Five-Year Plan

General measures of International cooperation Involve in international climate regime with the principles including

Common but Differentiated Responsibilities;

Enhance strategic policy dialogue, as well as practical cooperation;

Strengthen South-South cooperation

First time in national five-year plans setting up quantitive GHGsemission control target and all-round climate change policies

provide very good circumstances and much encouragement for China

CDM Fund to development businesses

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China CDM Fund An Innovative Mechanism

In August 2006, China Central Government

approved the establishment of China CDM Fund; In November 2007, the Fund launched its

operation;

A pilot money: to enhance market-drivenmechanisms for addressing climate change inChina;

A seed money: to leverage private resources;

An platform: for international and domestic

cooperation; and A promoter: to help Chinese enterprises build up

energy and carbon asset management capacity.

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China CDM Fund An Innovative Mechanism

Regulation of China CDM Fundissued by the CentralGovernment in September 2010

Integrates government and market functions;

Mandate: to support domestic activities addressingclimate change so as to promote sustainabledevelopment;

Instruments: investment, grant

Funding mainly from government-sharing of CDMrevenue into China

about 2.5 billion US$ into China, of which about 1.1 billion(more than 90% from HFC23 CDM projects revenue) intoChina CDM Fund

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China CDM Fund An Innovative Mechanism

In 2009 and 2010, China Central Governments total budget

input to energy saving and emission reduction : 25 billion US$(40.8 billion US$ from 2000 to 2010)

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2. 5

25

40. 8

05

10

152025303540

45

Tot al CDM

Revenue

Cent r al Budget

I nput ( 09&10)

Cent r al Budget

I nput ( 10 year s)

Bln

US$

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MRV Enhancement The Fund sponsors domestic MRV research

Purpose

Guide MRV activities of projects invested by the Fund;

Share MRV ideas and experiences with industries and society.

Working with the China standardization Academy, etc.

Project-level Emission Reduction MRV Guideline;

Emission MRV standardsin such sectors as iron&steel, cement,building

Both will accepted by China Standardization and Technical

Consortium for Energy Conservation and Emission Reduction, an

authoritative non-profit organization with about 400 institutional

members in diverse sectors China-wide.

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International cooperation Multilateral

Asian Development Bank

MOU signed

Implementing: China CDM Fund CapacityBuilding

Under Application: Enhancing Carbon

Emission Reduction Capacities in InvestmentBusiness of China CDM Fund

World Bank

UNDP

Bilateral

Governmental: MOU signed with NorwayInnovation

Non-governmental: work with NCSD based inWashington to establish China-USA IGCC andCCS Investment Cooperation in Texas.

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THANK YOU

Chen HuanDeputy Director General

Chenhuan@cdmfund.org

Tel: +86-10-88659333

Web: www.cdmfund.org

CDMFUND