LONDON (Reuters) - A Chinese government fund has told a U.N. panel it supports project developers which earn carbon offsets under a lucrative Kyoto Protocol scheme, and which rejects the idea that they are over-compensated.
Chinese project developers rejected key grounds for a review of Kyoto's clean development mechanism (CDM), and the China CDM Fund supported them, confidential papers showed a week before a U.N. panel decides whether to launch a formal review of the scheme.
The projects are the most lucrative under the CDM, which allows rich countries to buy offsets from carbon-cutting projects in the developing world as a way to ease the cost of reducing emissions.
