---Forum on SHP in China vs CDM was 
                        held on July 14 in Shanghai. Small hydropower is a clean, 
                        green and renewable energy which accounts for more thana 
                        half of the approved Clean Development Mechanism (CDM) 
                        projects, contributing greatly to the energy-saving, emission 
                        reduction and our reaction to climate changes. The Forum 
                        aims at adapting to the latest changes of international 
                        rules and to the developing trends of the international 
                        market, exchanging the development experience in small 
                        hydropower Clean Development Mechanism (CDM), sharing 
                        achievements, building consensus in order to promote China's 
                        small hydropower jointly under the context of global climate 
                        changes, and facilitating the better and faster development 
                        of the small hydropower CDM projects. director general 
                        of Hydropower & Rural Electrification Bureau of Ministry 
                        of Water Resources Mr. Tian Zhongxing, Chief of Taihu 
                        Basin Authority Mr. Ye Jianchun presented in the meeting 
                        and gave speeches.
                         Mr. Tian Zhongxing pointed out that 
                        hydropower is currently the largest renewable energy which 
                        provides 20% of the world's electricity. China has lots 
                        of rivers, and its hydropower potential and technically 
                        exploitable potential rank the first in the world. Among 
                        these, the annual power generation and the installed capacity 
                        of small hydropower accounts for about 30% of the annual 
                        power generation of hydropower. With the development of 
                        the economy, the society needs to change the energy structure 
                        and reduce the carbon emission in order to cope with global 
                        climate change. Since the Kyoto Protocol officially came 
                        into force, the Clean Development Mechanism (CDM) has 
                        been making a big progress in China. The development of 
                        CDM project for hydropower has introduced a lot of funds 
                        for the construction of small hydropower which promotes 
                        the development of small hydropower in China.
                         He stressed that we should strive for 
                        initiative in the international carbon trading market 
                        and gradually change the low-end position of our CDM for 
                        small hydropower in the international carbon market and 
                        the carbon value chain. Firstly, we must strengthen the 
                        policy guidance of the small hydropower CDM project; Secondly, 
                        departments at all levels of small hydropower CDM should 
                        maintain a close relationship with CDM administration 
                        for better coordinating the development of small hydropower 
                        CDM projects; Thirdly, the industry associations, domestic 
                        carbon trading service platform and other agencies should 
                        actively build the transactions bridges for the small 
                        hydropower CDM projects and train professionals; Fourthly, 
                        the related research and academic institutions should 
                        track the changes in international rules and carry out 
                        the in-depth researches; Fifthly, we should mobilize the 
                        owners' initiative to participate in the development of 
                        small hydropower CDM projects. He hoped that through this 
                        forum, the local authorities of small hydropower will 
                        pay more attention to the guidance of small hydropower 
                        CDM projects and enhance the owners' knowledge on developing 
                        small hydropower CDM projects, so as to promote the exchanges, 
                        communication and cooperation of the involved parties 
                        and stimulate the further development of the small hydropower 
                        CDM projects in China.
                          Mr. Ye Jianchun pointed out that climate 
                        change is one of the most serious problems the world faces 
                        nowadays and it has caused wide public concern in the 
                        international community. According to Kyoto Protocol which 
                        came into effect in 2005, the developed countries are 
                        responsible for a quantified emission limit which was 
                        legally binding. They can also, according to the Protocol, 
                        carry out cooperation at project level with developing 
                        countries, namely the Clean Development Mechanism (CDM) 
                        projects, to reduce the cost of domestic emission of the 
                        developed countries and to achieve its target of emission 
                        reduction. This is an innovative mechanism which plays 
                        a positive role both in promoting sustainable development 
                        in developing countries and in helping the developed countries 
                        to fulfill the emission reduction targets. Under the targets 
                        of controlling greenhouse gas emissions, China will reduce 
                        emission by 40%-45% for GDP per unit by 2020-and the proportion 
                        of non-fossil energy will reach 15%. Therefore, the promotion 
                        of circular economy, energy saving and emission reduction 
                        and fully relying on renewable energy is a must to achieve 
                        the sustainable development in China. Small hydropower 
                        is a kind of clean renewable energy and it accounted for 
                        about half of the approved CDM projects in our country. 
                        However, there still remain some external factors that 
                        restrict the process of its development, such as the long 
                        duration for application, complicated procedures, strict 
                        examination, huge amount of application funds and so on. 
                        Hence, nowadays when the issue of climate change gets 
                        increasingly heated, we are more urged to invest more 
                        capitals and technologies for the development of clean 
                        energies such as hydropower and reinforce research and 
                        discussion to explore a unique way for boosting the sound 
                        development of China's small hydropower.
                         At the forum, the leaders of relative 
                        ministries and experts introduced the latest changes of 
                        CDM international rules and the developing trends of the 
                        international market, management and developing policies 
                        of China's CDM, emissions permission trading, situation 
                        and trends of hydropower CDM and so on. Foreign buyers 
                        of hydropower CDM, representatives of hydropower CDM owners 
                        and the third-party audit institutions introduced the 
                        developing situation of CDM projects and related experience. 
                        The Forum also carried out related exchanges and discussions.
                         About 60 participantswere present at 
                        the forum, including leaders and experts from Hydropower 
                        Bureau and Taihu Basin Authority of Ministry of Water 
                        Resources, Department of Social Development of Ministry 
                        of Science and Technology, Institute of Global Climate 
                        Change of Tsinghua University, CDM Executive Board members, 
                        the CDM Centre of Energy Research Institute of National 
                        Development and Reform Commission, IN-SHP, Shanghai Environment 
                        and Energy Exchange, Shanghai International Consulting 
                        Co., Ltd. and guests and experts from small hydropower 
                        authorities of related provinces (autonomous regions and 
                        municipalities), research institutions and the International 
                        Hydropower Association.
                         Director of HRC Ms. Cheng Xialei, and 
                        senior engineer Mr. Zhao Jianda attended the forum. (2010-07-22) 
                      
                      