Beijing, April 3, 2008
—IFC, a member of the World Bank Group, and Anhui Kangyuan Electric Power Group Co. Ltd have signed an agreement to help reduce carbon dioxide emissions in China. Through the Clean Development Mechanism of the Kyoto Protocol, the emission reductions will come from nine small run-of-river hydropower projects (1.3 to 28 megawatts) and will contribute to China’s efforts to reduce greenhouse gas emissions.
IFC purchased emission reductions for more than $8 million from Kangyuan through the IFC-Netherlands Carbon Facility, which IFC manages on behalf of the Dutch government. The Netherlands will use the reductions to comply with its commitment under the Kyoto Protocol. The projects will also bring positive social impacts through better road access, more reliable electricity and water systems, better protection from flooding, and more access to irrigation water.
Kangyuan is the major shareholder of five project sponsors that will be developing the nine hydropower projects in Anhui Province.
Chuanzhang Wu, Chairman of the Board for Kangyuan, commented, “Our projects are well designed, sophisticated, and flexible, and they make the most of the topography and geological features of each location. The staff at Kangyuan have excellent operational and technical backgrounds. We are well equipped and pleased to be a part of China’s efforts on climate change.”
Vikram Widge, Head of IFC’s Carbon Finance Unit, said, “China’s share of global energy demand has been increasing, as has its rate of power generation. Projects like these reduce the country’s reliance on coal and prioritize renewable energy.”
IFC manages two carbon purchase facilities on behalf of the Dutch government. IFC also offers several financial products for the growing carbon market, including a carbon delivery guarantee for projects that generate emission reductions and loans against emission reduction purchase agreements. For more on IFC’s carbon finance offerings, visit
www.ifc.org/carbonfinance
.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org.
About Kangyuan
Kangyuan is a regional power generation company engaged in the development, construction, and management of hydropower projects in China’s Anhui Province. It is developing and implementing nine small run-of-river hydropower projects. When bundled together, these projects will enable Kangyuan to sell emission reductions, based on run-of-river hydro generation assets that displace fossil fuel-based generation. Kangyuan is the largest hydropower project developer in the province. Since its establishment in 1996, it has developed over 10 power projects in addition to the projects from which IFC will purchase certified emission reductions.
