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Green group accuses China of climate blackmail: The Guardian

When Communism has failed to provide answers to and solace from the problems of poverty and socio-economic uplift, as is evident by reports in the Chinese media and internet blogs, Durban summit should not be made a hostage to the predilections of the elite few in Beijing.

POREG VIEW: In the context of UN Climate Summit in Durban later this month and the mounting demand for binding commitments under a climate regime, the criticism of environmental NGOs that China is indulging in climate blackmail assume importance. It also highlights the way Beijing is trying to display its newly acquired Yuan muscle even in the row over hydrofluorocarbon-23 offsets, which have a much greater warming effect than carbon dioxide and linger in the atmosphere for 200 years.

As the Guardian report points out, since 2005, Chinese firms have received the bulk of the $6bn in carbon credits for the reduction of these gases, which are produced in the manufacturing of refrigerant chemicals. The money has mostly come from European firms that have bought the offsets under the clean development mechanism, but this source of funding will come to an end next year. The EU has banned HFC-23 offsets because they are inefficient: the value of credits is 70 times the cost of destroying HFC-23 gases.  

Chinese and Korean firms have cynically created hydro-fluoro-carbon facilities in order to qualify for credits, which can generate twice as much income as selling the refrigerant. The EU decision has naturally upset Beijing’s calculations; it is set to loose $1.3bn in tax revenues for the state. And it will translate in the immediate to short run loss of income for these entities as admitted by the China Clean Development Mechanism Fund.  “If there’s no trading of HFC-23 credits, they (these HFC facilities) will stop incinerating the gases”, warned Xie Fei, the fund’s revenue management director, sparking of outrage amongst the environmental groups which have been urging BASIC members particularly China (Brazil, South Africa and India are the other members) not to hide behind the low carbon emissions of the poor. These countries have taken more or less a united stand at the Copenhagen summit.  On the eve of Durban summit, they are being asked to be flexible and be willing to consider binding commitments under a future climate regime.

As Samuel LaBudde of the Environmental Investigation Agency, China is not the victim, and a world order responsive to climate change cannot be predicated on unrepentant greed. It is difficult to disagree with his observation that attempting to force countries ‘into squandering billions on fake offsets that actually increase production of greenhouse gases is extortion’.  

China is now making efforts to block global campaign to find alternative means of dealing with potent industrial emissions. One of the alternatives on the table is direct payments to factories and technological and financial support for developing nations to dispose of the gases.   These proposals may not be perfect fits and may appear as an extension of capitalist mindset. But when Communism has failed to provide answers to and solace from the problems of poverty and socio-economic uplift, as is evident by reports in the Chinese media and internet blogs, Durban summit should not be made a hostage to the predilections of the elite few in Beijing.

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