GUANGZHOU: ICECAP Ltd signed an agreement with Guangzhou Huijing Environmental Protection Technology Co Ltd earlier this week to purchase all the certified emission reductions generated by the Xingfeng Landfill, one of the largest landfill sites in China, from 2007 to 2012.

UK-based ICECAP Ltd is one of the leading private sector purchasers of emissions credits arising from the Clean Development Mechanism of the Tokyo Protocol; while Huijing, a subsidiary of Guangzhou Solid Waste Management Center, operates the Xingfeng Landfill Site.

The Xingfeng landfill project is expected to generate about 5 million tons of certified emissions reductions in the coming six years and ICECAP will pay an estimated minimum of $50 million for the purchase.

"The project involves the capture and utilization of methane emanating from the landfill site, which will have the dual benefits of reducing greenhouse gas emissions by 5 million tons by 2012 and generating much needed clean energy for the local grid," said Greg Dunne, director, ICECAP.

The Guangzhou project is the 5th one ICECAP has ever supported in China since 2005 when it concluded its first transaction for the purchase of certified emission reductions of about 7 million tons from the Jincheng Anthracite Mining Group in North China's Shanxi Province. The purchase was one of the largest deals in the world.

ICECAP Ltd is currently working on several others, offering Chinese companies, public and private sector alike, direct access to the global carbon market.

"It has been a priority for our firm to develop the Chinese business into South and Southwest China," he said.

Brian Davidson, British general consul based in Guangzhou, said that Guangzhou project is another wonderful example of the Tokyo Protocol working to promote reduction of carbon emissions through cross-border investment and partnership between the public and private sectors, and this will help improve the local environment and support the development of cleaner sources of power.