China’s wind power sector, under the United Nation’s Clean Development Mechanism (CDM) initiative, will benefit from a carbon trading scheme that deploys funds from wealthy countries to support clean energy projects in developing countries.
The CDM authorizes industrial countries to fulfill the commitments they have made for reducing greenhouse gas emissions under the Kyoto protocol in 1997.
In 2005, wind power project investors in developing countries including China began applying for CDM funding. By 2009, 75 percent of all wind power projects in China got registered with the CDM.
The CDM’s board rejected some proposals doubting that China had lowered subsidies to ensure more projects to get enabled for CDM funding. As a result, a slow-down occurred and aggravated the criticism of the CDM’s environmental benefits.
Now, China has achieved a carbon- financing wind energy project under CDM funding from U.S. that will make sufficient impact on renewable energy segment in China after a long interval.