China launches global warming fund

China has launched a government fund to channel money from the sale of emissions-reduction credits into environmental projects, agencies reported on Friday, adding that it may reach a total of US$3 billion.

The new fund is to receive a portion of the money paid to Chinese companies under the Clean Development Mechanism, a global system that allows industry in rich countries to offset their pollution by paying companies in developing economies to reduce their emissions.

"The establishment of this clean development fund is a very important activity by the Chinese government to address the global problem of climate change," AP reported finance minister Xie Xuren as saying.

China had approved 885 emission-reduction projects by the end of October, reports said, if all of the projects are successfully completed, they will bring in US$15 billion to Chinese companies, with US$3 billion going to the environmental fund.

See full story

Read more about carbon trading