China WindPower Group and Wuhan Iron and Steel Group Corporation (“WISCO”) recently held a Chinese Certified Emission Reduction (“CCER”) Purchase Agreement Signing Ceremony in Beijing. CWP successfully initiated its first CCER trade and will realize sales from such transaction.
According to the agreement, CWP agrees to transfer its CCER units until December 31, 2015, to WISCO at the rate of RMB7.5 per ton. The CCER units under the purchase agreement are generated from CWP’s wind power projects in Zilingpu County, Jinquan County, Yushan County and Xinshi County – all located in Hubei Province, China.
CCER are carbon credits generated by The Clean Development Mechanism (“CDM”) that can be used to offset carbon emissions. According to “Provisional Measures for the Administration of Voluntary Greenhouse Gases Emission Reduction Trading” issued by the National Development and Reform Commission (“NDRC”), CCER units will only be issued to emission reduction projects that satisfy the requirements of national authorities with approval on monitoring reports and authorized certificates.
The transaction is the Group’s first CCER trade. We can benefit in various aspects while fulfilling our corporate social responsibility for environmental protection. In the midst of continuous development and improvement in CCER trading, the Group will further explore the trading opportunities of its CCER units in other regions in China to maximize value for our shareholders.