Chinese enterprises collectively counterattack EB decision

Yin Yijie Deng Yao and China wind power CDM projects collectively rejected, the following steps of the chemical CDM project also chose to return a high-profile response to the United Nations Clean Development Mechanism Executive Board (EB) accusations. September 16 China fluorine silicone Organic Materials Industry association six corporate representatives, in response to suspected fraud, formally clarified.　　The application of the chloroform (HFC-23) CDM project did not result in a higher than market demand for refrigerant HFC-22 (a substitute for traditional freon), nor did it yield additional benefits.　　The 8 CDM projects in a total of 6 Chinese companies were rejected by EB on suspicion of fraud, accounting for half of the same group of rejected projects worldwide.　　The balance of supply and demand is a by-product in the process of producing HCFC-22, a greenhouse gas with strong greenhouse effect, and its global warming potential (GWP) is 11,700 times times that of carbon dioxide HFC-23.　　According to the materials provided by China fluorine-silicon organic materials Industry association, the growth of China's HCFC-22 production has always been in keeping with the growth of demand, and there has never been a phenomenon that "HCFC-22 production growth is much higher than the growth of market demand". Data show that since 2000, due to the rapid development of China's economy and the acceleration of urbanization, China's air conditioning, building insulation materials and fluorine and other materials, the demand has also increased, resulting in the air conditioning refrigerant, building insulation Board foaming agent and raw material use of the HCFC-22 market demand has increased rapidly.　　In air conditioning, for example, in 2000-2008 years, China's annual production of air-conditioning to more than 20% of the speed of growth, in 2008 alone, China's air-conditioning production of more than 70 million units. It is understood that, in addition to domestic demand, since 2000, China's HCFC-22 exports have been showing an upward trend in 2009, China's HCFC-22 exports accounted for about 20% of the total production, while China's 11 registered successful HFC-23 decomposition CDM projects, cumulative can apply for CERs (　　The HCFC-22 output of certified emissions is only 206,000 tonnes, accounting for only 43% of China's 2009 HCFC-22 production. China fluorine Silicon Organic Materials Industry association president Mei Shengfang said. "Market demand is the only reason we produce HCFC-22."　　He noted that the growth rate of HCFC-22 had been above 20% per cent since the end of this century, and that growth had decreased in the late 2008 to 2009, but remained at 4%-5% per cent; this year, as in other industries, HCFC-22 's production has grown significantly from last year's, with strong market demand. There is no arbitrage phenomenon in front of EB suspected through the CDM mechanism, the production of refrigerants through the elimination of HFC-23 to obtain a large number of approved emissions reduction (CERs), thereby giving the enterprise "additional" benefits of the view, China's fluorine-silicon organic materials Industry association, said from the HFC-23 decomposition of CDM proceeds and HCFC -22 production costs, Chinese enterprises do not exist regardless of market demandand intentionally more production or even destruction of HCFC-22 motives. It is understood that enterprises to implement the HFC-23CDM project proceeds of 65% need to be submitted to the country according to the provisions, to support national response and mitigation of climate change.　　China fluoro-Silicone Organic Materials Industry association said that deducting the operating costs of HFC-23CDM projects, the actual income of the production enterprises is only 10% to 15% of the total CDM project, while the cost of producing HCFC-22 is more than 4 times times that of CDM projects. "We think some EB Commissioners are unfounded and illogical in their suspicions that Chinese companies deliberately produce and even destroy HCFC-22 for CDM projects," he said. "Shandong Dongyue Chemical Co., Ltd. Project director said, on the production issue, China's 11 domestic enterprises to do CDM HCFC-22 production before the project application has been approved." "The maximum output of each enterprise is approved dead, the excess output is not CDM-efficient, so, in the CDM project to discuss our companies HCFC-22 production growth, I can tell you that we do not grow, zero growth."　　"The owner admits that because of market demand, there is an excess of output, but according to the data approved before the project application, the excess output not only can not replace the" extra "benefits, but also to increase the cost of reducing emissions.　　Review rules the Chinese Society of fluorine-silicon organic materials industry believes that EB has seriously violated the review rules issued under the Kyoto Protocol and the Marrakesh Agreement on the emission reductions of registered CDM projects. Under EB's Rules, if the review rules are modified, the newly modified rules will apply only to CDM projects submitted for registration after the date of modification.　　The CDM projects of six companies in China have been registered as early as a few years ago. It is understood that, according to the CDM rules, six of the CDM projects are audited from 2001 to 2004 for three consecutive years of stable operation based on, that is, EB in China's enterprise CDM project validation completed and registered after the successful attempt to revise the review rules, " Would endanger the entire CDM system previously established by the international community, which would allow participants in nearly 2,400 registered CDM projects around the world to have no uniform rules to apply for the issuance of emissions reductions. "In any case, in the coming round of the new climate talks, the turmoil surrounding the international carbon market of China's enterprises will undoubtedly provide China with a rare experimental site, and China's carbon trade to really develop, also need such a game space."