Beijing, April 3, 2008
—IFC, a member of the World Bank Group, and Guizhou Kaiyang Xinglong Hydropower 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 two small run-of-river hydropower projects and will contribute to China’s efforts to reduce its greenhouse gas emissions.
IFC purchased the emission reductions for more than $4 million from Xinglong through the IFC-Netherlands Carbon Facility, which IFC manages to help the Dutch government 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.
Xinglong Hydropower will build and operate the hydropower projects in the Guizhou province.
Weihua Zhou, Chief Executive Officer of Xinglong, commented, “With the government’s interest in renewable energy and the Renewable Energy Law in place, China is moving toward climate-friendly projects that will benefit the country in the future.”
Vikram Widge, Head of IFC’s Carbon Finance Unit, said, “The reliance on coal for power generation is not a sustainable solution for China’s growing energy demands. Hydropower generation provides a renewable, climate-friendly solution.”
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 Xinglong
Xinglong is a Chinese company established in 2003 to build and operate two run-of-river hydropower projects, Nanjiang (21 megawatts) and Zijiang (12 megawatts), which are located in the Guizhou Province of southeastern China. The hydropower facilities are fully owned by Xinglong.
