China to charge levy on CDM projects
Posted by Melody in EngineeringChina has passed a law charging a levy on CERs from its CDM projects. According to sources, large projects would have to give away up to 65% of their CER revenues. Mid-size projects will be levied with 40%. This rebate seems to apply especially for projects with benefits for local sustainability. Best off are renewable energy projects, facing only a 2% charge.
Apparently, this law is intended to give CDM project developers incentives towards the project types favorised by the Chinese governement, especially renewables. However, it will probably put a big question mark behind the additionality of a big range of project candidates. Maybe someone can explain me why a government would restrict undoubtedly environmentally friendly investments like this?
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I don't understand this quite; it seem an extra hurdle. Hence, China as host country can negotiate the CO2-price, the part of reductions in a projcet, that can be tranferred from the total. No reason for a levy it seems it seems to me. Administration for registration is also not needed, because the Issuing Body, the CDM Executive Board in Bonn, is doing the registration, and ask a fee for that. Besides investors need to pay a 2% fee (share of the proceeds), as input in the official Climate Fund, for the least developing countries.