(Reuters Point Carbon) – Finland-based carbon asset manager Green stream has bought 1.2 million carbon credits from emission reduction projects set up to serve China’s carbon market, the first known foreign investment in the nation’s emerging emissions market. The Helsinki-based firm bought Chinese Certified Emissions Reductions (CCERs) from around eight schemes, mostly renewable energy projects that cut emissions by displacing coal-fired power plants. “We are hoping to ramp up the volume to around 12 million within the next six months to a year,” Karl Upston-Hooper, Green stream’s general counsel said. The company plans to sell the offsets to Chinese companies that face emissions curbs under one of China’s seven pilot emissions trading schemes, which are set to launch over the next 18 months. China, which accounts for 30 percent of global greenhouse gas emissions, plans to replace the seven markets with a national scheme later this decade in a bid to meet its goal to reduce the carbon intensity of its economy by 40-45 percent by 2020. The projects originally sought to generate offsets under the U.N. offset market – the Clean Development Mechanism (CDM) – but are ineligible for use in the EU Emissions Trading Scheme, the world’s biggest carbon market. Full Story »

China has become the largest provider among developing nations of carbon credits under the Kyoto Protocol after approving more than 350 foreign-invested carbon reduction projects. As a developing country, China is not obligated to meet targets set by the Kyoto Protocol, but under the Clean Development Mechanism (CDM) it can provide so-called carbon credits to developed countries if they invest in projects that help reduce carbon emissions in China. China's National Committee on Climate Change told Xinhua that since 2005 it has approved 352 CDM projects that could cut carbon emissions by 780 million tons a year. The projects are waiting to be registered under United Nations Framework Convention on Climate Change (UNFCCC). So far 42 CDM projects in China have been registered with UNFCCC, and they are expected to cut emissions accounting for more than 40 percent of the carbon credits earned under the CDM. A carbon credit is given for the reduction of every ton of carbon prevented from being emitted into the atmosphere. "China is now the largest carbon credit provider under the Clean Development Mechanism in the world," said He Ping, an energy and CDM program manager with the United Nations Development Program in China. The Clean Development Mechanism allows developed countries to fulfill their own emission reduction obligations at much lower cost by investing in clean energy projects in developing countries such as China. The projects include upgrading equipment in factories or converting coal burning factories to alternative energy sources. Under the Kyoto Protocol that came into effect in 2005, 38 industrialized countries are required to reduce their greenhouse gas emissions by an average of 5.2 percent below the 1990 levels, between 2008 to 2012. By using the CDM these countries can meet their emission reduction targets at a much lower cost by investing in clean energy projects in developing countries such as China. Insiders estimate the cost of a carbon credit is about 27 Euros in the European Union, while in China the same credit would require foreign investors spend seven to nine Euros. The CDM is the only mechanism within Kyoto Protocol that allows the trade of carbon credits between developed countries and developing countries. "The mechanism is a win-win solution for both developing countries and developed countries," said He. China's CDM projects include wind power, hydropower, landfill gas power generation and garbage power generation. Earlier this month, Hebei Province signed a contract for a wind power project through the CDM with Japan. The deal will provide Japan with 60,000 carbon credits a year between 2008 and 2012. China's largest CDM project was jointly launched by Zhejiang Juhua Limited and Japan's JMD company. It provides Japan with 2.4 million credits. Chinese Premier Wen Jiabao said at the press conference on March 16 that the Chinese government will keep its pledge and honor its international responsibilities by reducing greenhouse gas emission. "We endorse the Kyoto Protocol and we have formulated plans in light of the United Nations Framework Convention on Climate Change," said Wen. China has set a target to reduce energy consumption per unit of GDP by 20 percent during the 2006-2010 period, Wen said. China is the second largest greenhouse gas emitter. Some international energy agencies forecast that it will overtake the United States to become the largest emitter after 2009. Full Story »

Demand for foreign-made baby milk in China is strong after contaminated baby formula killed six infants in 2008 Retailers in the UK are rationing sales of powdered baby milk because of a surge in demand in China. Danone, the manufacturer of Aptamil and Cow and Gate baby milk powder, said most supermarkets were introducing a restriction of two cans per customer. It said the limit was to prevent some individuals from bulk-buying baby milk for "unofficial exports". Retailers were also capping sales of Nestle's SMA milk, despite the company saying there were no stock shortages. Danone said in a statement: "We understand that the increased demand is being fuelled by unofficial exports to China to satisfy the needs of parents who want Western brands for their babies." Chinese thirst "We would like to apologise to parents for any inconvenience caused by this limit. We know that most parents only buy one pack at a time, so we hope that the impact of this limit on UK parents will be minimal," it added. Supermarkets Asda, Sainsbury's, Tesco and Morrisons said the purchase of certain brands would be limited to two units per customer per day. Foreign-made baby formula is popular in China, especially since a locally-manufactured formula laced with the industrial chemical melamine killed six infants in 2008 and caused another 300,000 to fall ill. Earlier this year, shops in Australia were forced to restrict sales of infant formula, as Chinese customers and tourists bought them in bulk to send them home or to sell them online. Authorities in Hong Kong also introduced restrictions in February to prevent shortages, banning travellers from leaving the territory with more than 1.8kg (4lb) of formula. Last month, 10 people were arrested there for trying to smuggle more than the allowed amount into mainland China. Danone said it was taking action to respond to the shortfall in the UK, including increasing production of milk, which means extra supplies of all its brands are arriving every week, according to BBC business correspondent Emma Simpson. Boosting production Danone is also increasing production and supplies of its brands that are already available in China, in order to meet demand there. But it added: "If parents are unable to find their baby's usual brand of milk, we recommend they try another local store or revisit the store on another occasion." Richard Dodd, head of media and campaigns at the British Retail Consortium, said: "A number of retailers are limiting the amount of baby milk that can be bought by any one customer. "Retailers are taking this precautionary step to ensure stocks continue to be available to everyone wanting baby milk," he added. However, Nestle insisted there were no shortages of its formula milk available to retailers. The company said: "We do not have any evidence of bulk purchase of SMA for export, and we are in the process of contacting all our retail customers to confirm this, and to notify them that we do not have - and do not anticipate - any stock issues for powdered infant milks. We would like to reassure our consumers that we are not seeking to impose any limits on the sale of our formula, and any decision to do so is at the sole discretion of the retailer. Contrary to reports, Nestle UK has never requested that retailers limit the supply of SMA powdered infant milks sold to consumers." Full Story »

BY EMMA SLAWINSKI
AGRICULTURAL group and fresh pro-duce marketer, Yasheng, has revealed ambitions to expand its business interna-tionally, as it announced healthy growth in sales and profit for the full year to 31 December 2010.
Yasheng Group, which is incorporated in California but conducts farming operations in China north-western Gansu province and draws around 34% of revenues from sales of fruits, saw net sales rise to USD849.45 million, 15% higher than in 2009.
This was attributed largely to improved pricing for agricultural products, particularly fruit, potatoes and cotton, and greater demand for products in the domestic market. Yasheng also credited expanded distribution channels for the significant growth in revenues.
Full-year profit in 2010 was up 26%, to USD105.85 million, while net income grew by 25% to USD99.18 million.
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BY FOODNEWS STAFF
THE new season peach processing in the southern hemisphere has been upset by the entry into administration of a major processor in Argentina.
Alco accounts for perhaps 25% of the peaches grown in Mendoza, and produces both puree and canned fruit. The company has recently gone into an Argentine d form of Chapter 11 protection.However, it is continuing to trade and it is also believed that Alco will process peaches as normal this season. Argentina will start running its peaches in the New Year.
FOODNEWS has received an unconfirmed report that Alco lost a major customer in Argentina,the Maxiconsumo supermarket chain. The processor was unable to service its debts, and the bank(s) pulled the plug and seized Alco warehouse and its contents...
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