Climate Change and the Kyoto Protocol
Investment. Technology transfer. Knowledge sharing.
The mitigation of climate change is one of the most pressing and important challenges facing the world today.
The Kyoto Protocol is the first internationally coordinated tool to address climate change and was ratified in 2005 by most of the key industrialized nations with the exception of the United States and Australia.
The Kyoto Protocol sets a strict cap on overall emissions emitted by member states. The Clean Development Mechanism (CDM), a part of the Kyoto Protocol, allows member states to invest and develop projects in developing countries that reduce emissions, in return for Certified Emission Reductions (CERs). These CERs may be used by industrialized countries to help meet their emissions targets and allow developing countries to realize the benefit by reducing their emissions.
This market-based management of the global atmosphere leads to two key benefits: (i) it lowers the cost of capping emissions so that the cap can be set as tightly as possible, and, (ii) it stimulates the transfer of technology and knowledge from the industrialized world to developing countries. Peony Capital was established with these key benefits in mind. Our mission is to contribute to sustainable development in China through investment in CDM projects, and by providing finance, transferring technology, and sharing knowledge.
