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There are no plans to set up a carbon-credit exchange in China like those in London and Chicago, according to a circular recently issued by the country's top office on climate change to correct some inaccurate reports.

The Office of National Coordination Committee on Climate Change under the National Development and Reform Commission said that according to the Kyoto Protocol, emissions trading and joint implementation are carried out among Annex I countries, which have quotas for greenhouse gas (GHG) reduction.

China, as a developing and an Annex II country, can only run clean development mechanism (CDM) projects to mitigate the effects of GHG emissions.

"CDM is a mechanism essentially different from carbon emissions trading," according to the circular.

However, although China will not establish a carbon exchange, it will work to meet its commitment to the international community to curb global warming by seeking sustainable development, Foreign Minister Li Zhaoxing said at a press conference on Tuesday on the sidelines of the annual session of the National People's Congress (NPC), China's top legislature.

"China, as one of the developing countries suffering from climate change, pays great attention to this issue," Li said.

The climate change office also said it welcomed research, co-operation and the development of CDM projects in China, and would provide information to groups or businesses looking to run CDM projects in the country.

Nearly 500 registered programs have been set up under the CDM worldwide. Such projects are expected to reduce emissions by 750 million tons of carbon dioxide by 2012. China has offered permits to nearly 300 projects, of which 37 have registered.

(China Daily 03/08/2007 page6)