Trade in carbon credits soaring
China may become the world's biggest supplier of greenhouse gas emission rights over the next six years. The country is poised to generate 16.61 million carbon emission reduction units per year up to 2012, according to the United Nations Framework on Climate Change. This amounts to 30.67% of the world's total with one unit equal to a ton of carbon dioxide emissions. These rights are transferable and investors throughout the world may be willing to buy the credits China generates rather than spend a lot more to reduce emissions at home.
Citic plans US$2bn oil bid
China International Trust & Investment Corp (CITIC), one of China's largest conglomerates is preparing a US$2-billion bid for Kazakhstan-based oil producer Nations Energy. If successful, Citic is likely to grant a first right of refusal to its commodities arm, Citic Resources Holdings, to buy the holding, international media reported. The subsidiary had earlier given up an opportunity to acquire the company amid concerns that the deal was too large.
China considers ethanol targets
A new energy policy is under consideration that would encourage use of ethanol so as to improve air quality. Ethanol is a clean fuel made from agricultural products. Fabrizio Zichichi, head of ethanol at commodities trader Noble Group, told the Financial Times that Beijing could set a target to boost the share of ethanol in the country's energy mix by the end of the year. China is the third-largest ethanol producer in the world behind the US and Brazil, and uses mainly corn, cassava and sweet potatoes to make it. Eight provinces have made E10 fuel, a mixture of 10% ethanol and petroleum, mandatory in gas stations.
Report: oil supply assured
China's oil consumption is on the rise but so are its reserves, said the Chinese Academy of Engineering. New oil discoveries will ensure China's supply well into the future despite exploration difficulties. Annual oil output is expected to surpass 200 million tons by 2020, up from 182 million tons in 2005 when 42.9% of oil products were imported. The National Development and Reform Commission has calculated that China will consume 330-350 million tons of oil per year by 2010.