Beijing, April 3, 2008
—IFC, a member of the World Bank Group, and Beijing Deqingyuan Agriculture Scientific have signed an agreement to help reduce methane emissions from the company’s chicken farm. Methane, a greenhouse gas, is captured from chicken litter and turned into biogas to produce electricity. Through the Clean Development Mechanism of the Kyoto Protocol, the farm qualifies for Certified Emission Reductions. The agreement takes place under the IFC-Netherlands Carbon Facility, and IFC will use the Dutch government’s funds to buy emission reductions for more than $4 million.
Through the facility, IFC purchases emission reductions in developing countries to help the Netherlands comply with its Kyoto Protocol commitment. The chicken litter comes from Deqingyuan’s egg production operations. Burning the biogas will replace coal-fired electricity and heat, and residue from the process will be used as fertilizer.
Zhong Kaimin, Chief Executive Officer of Deqingyuan, commented, “We are proud to be a top producer of environmentally friendly eggs. Now we have also found an opportunity to reduce pollution from the waste produced by our chicken farms.”
Vikram Widge, Head of IFC’s Carbon Finance Unit, said, “The Deqingyuan project is another example in China of an innovative way to replace coal-fired electricity with a climate-friendly and sustainable source of power. Deqingyuan, a farm with 3 million chickens, could be a major source of pollution, but through this model the company is reducing its impact on the local environment. It is generating a significant volume of biogas-fueled power and reducing its greenhouse gas emissions.”
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 Beijing Deqingyuan Agriculture Scientific Company Ltd
Deqingyuan is a privately held company established in May 2002 . It has built its brand on the quality of its eggs and a highly sanitary operation that is trusted to supply a disease-free product in an industry where bird diseases occur fairly often, particularly in Asia. The company feeds its chickens only corn that has been grown without pesticides. These attributes have helped Deqingyuan earn three “green” certifications from industry and government entities.
