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Posted: 27 November 2009 0022 hrs

BEIJING: China unveiled on Thursday what it called an ambitious plan to boost energy efficiency and curb its carbon footprint in the most detailed indication yet of its stance heading into a world climate summit.

The world's most populous country will cut the amount of carbon dioxide emitted per unit of gross domestic product in 2020 by between 40 and 45 percent, based on 2005 levels, a statement from the State Council, or cabinet, said.

"This is a voluntary action taken by the Chinese government based on its own national conditions and is a major contribution to the global effort in tackling climate change," the statement said.

It added that China faced "enormous pressure and special difficulty in controlling greenhouse gas emissions".

The announcement marks the first time China has put specific numbers on a September pledge by President Hu Jintao to cut carbon intensity by a "notable margin".

Carbon intensity refers to emissions per unit of economic activity. Emissions would continue to grow under China's plan as economic growth is expected to continue. Beijing is not offering an absolute cut in carbon dioxide production.

The announcement came a day after Washington said President Barack Obama would attend the December 7-18 meeting in Copenhagen with an offer to cut US emissions by 17 percent from 2005 levels by 2020.

China said it will achieve its targets through a mix of measures including stepped-up efforts to develop renewable energy and "actively pushing forward nuclear power and other action".

It also said it would make "relevant" adjustments to "fiscal, tax, and pricing" policies, but gave no specifics.

Experts have called on China to raise the cost of energy, particularly heavily polluting coal on which it relies for about 70 percent of its fast-growing energy needs, to encourage conservation and curb emissions.

The government statement said China also would step up reforestation and investment in low-carbon and energy-saving technologies including "clean coal, renewable energy, advanced nuclear energy and carbon capture," it said.

Environmental group Greenpeace released a statement welcoming the announcement but called on both China and the United States - the number one and two sources of carbon emissions - to do more.

"Given the urgency and magnitude of the climate change crisis, China needs stronger measures," Greenpeace China's climate and energy campaign manager Yang Ailun said.

At a press conference after the plan was announced, China's top climate change negotiator Xie Zhenhua made clear his country's "primary task" remained economic growth, and that emissions would rise.

"China is a developing country, so the primary task we face is economic development, poverty alleviation and the improvement of people's livelihoods," he said.

He declined to offer a time-frame for when China's greenhouse gas output would peak or how big its emissions would be in 2020.

Greenpeace offered a harsh assessment of developed countries such as the US, which are viewed as having the wherewithal for more aggressive action.

Yang said the "inadequate" US offer amounts to just a 4-5 percent reduction from 1990 levels, compared to Europe's pledge to reduce emissions 20 percent from 1990 levels by 2020 - and even more if a global deal is reached.

She said the developed world must cut emissions at least 25 to 40 percent below 1990 levels by 2020 and 80 to 95 percent by 2050 if the planet is to avert "catastrophic or runaway climate change."

Scientists have warned that without aggressive action, global temperatures could rise dramatically this century with calamitous consequences such as volatile weather and rising sea levels.

Pressure has mounted on China and the United States to announce substantive steps to limit emissions and seek a meaningful deal in Copenhagen.

China earlier Thursday announced that Premier Wen Jiabao would join dozens of other world leaders at the summit, which was called to seek a post-2012 successor to the Kyoto Protocol on limiting greenhouse gas emissions.

The United States wants aggressive Chinese steps to rein in its fast-growing emissions while Beijing argues rich developed nations bear the historical blame for carbon build-up in the atmosphere and should shoulder the burden.

China says that as a developing nation, it should be given leeway on emissions as it seeks to grow its economy and reduce poverty among its 1.3 billion people. - AFP/de

From Channel News Asia - http://www.channelnewsasia.com/stories/afp_asiapacific/view/1020791/1/.html

Posted: 25 November 2009 0437 hrs
LONDON: The Bank of England admitted on Tuesday it lent a total of 61.6 billion pounds to Royal Bank of Scotland and HBOS in secret during last year's financial crisis, adding that the cash had been repaid.

The British central bank revealed the loans, equivalent to 68 billion euros or 102 billion dollars, in a statement to coincide with governor Mervyn King's appearance before a Treasury Select Committee hearing.

The BoE said that in autumn 2008 it had offered emergency lending to Royal Bank of Scotland (RBS) and HBOS bank, which is now part of Lloyds Banking Group (LBG).

The bank said the loans could now be revealed because it judged that there was no longer a risk of a "potentially systemic disturbance" to the financial system.

"Now that RBS has signed up for the asset protection scheme and Lloyds has embarked on its alternative strategy for capital raising, the bank judges that there is no longer a need for the assistance to remain secret," the BoE said.

RBS borrowed a maximum of 36.6 billion pounds on October 17, 2008, and HBOS borrowed a maximum of 25.4 billion pounds on November 13, 2008. The groups repaid the cash in December and January respectively.

Junior finance minister Paul Myners defended the move, and declined to say if other secret loans had been made to banks.

"This is precisely what a central bank does in terms of providing lender of last resort facilities to support the banking system," he told Channel 4.

"The future of the banks matters to parliament and parliament recognises that the Bank of England occasionally needs to act covertly and has given the Bank of England the legal power to do that."

Struggling HBOS was bought by rival Lloyds TSB in a government-brokered deal that created Lloyds Banking Group earlier this year.

However, LBG fell under state control as a result of the global financial crisis and is now 43-percent owned by the taxpayer.

Royal Bank of Scotland was also ravaged by the credit crunch and the takeover of Dutch giant ABN Amro at the top of the market in 2007. The state now owns 84 percent of RBS after an enormous bailout.

Another British bank, Northern Rock, was nationalised in February 2008 after it ran into severe funding problems because of the global credit crunch. - AFP/de

From Channel News Asia - http://www.channelnewsasia.com/stories/afp_world_business/view/1020362/1/.html