Mittal joins UN to set up Asia's first carbon-credit exchange in China

08 February 2007

Mumbai: Arcelor Mittal, the world's largest steelmaker, which is eying major inroads into China, along with the United Nations will help the country make a head start in the multi-billion-dollar global carbon market with Asia's first carbon-credit exchange in Beijing.

The setting up of carbon credit brokerages in western China, which is being co-ordinated, by the UN is expected to spur investments in technology that reduce emissions, UN officials said in Beijing.

Arcelor Mittal is providing financial support, the UN said, without specifying the amount. The project is estimated to cost $1.7 million over three years.

China, which is set to overtake the United States as the world's largest carbon dioxide emitter, will have an exchange and 12 brokerages in the western province.

The project proposes establishment of clean development mechanism (CDM) technical service centres in 12 provinces, including Xinjiang, Qinghai, and Inner Mongolia. These centres will act as brokers between international investors and local partners to kick-start "green" investment in China's less developed regions.

The initiative will help China build capacity and provide policy input for the expansion of carbon market and reduction of greenhouse gas (GHG), reports quoting the UN resident co-ordinator and UNDP resident representative in China Khalid Malik said.