The new fund is to receive a portion of the money paid to Chinese companies under the Clean Development Mechanism, a global system that allows industry in rich countries to offset their pollution by paying companies in developing economies to reduce their emissions.
"The establishment of this clean development fund is a very important activity by the Chinese government to address the global problem of climate change," AP reported finance minister Xie Xuren as saying.
China had approved 885 emission-reduction projects by the end of October, reports said, if all of the projects are successfully completed, they will bring in US$15 billion to Chinese companies, with US$3 billion going to the environmental fund.
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