Sumitomo Chemical Co. said Wednesday it will invest $2.5 million in the World Bank's BioCarbon Fund by 2017 to obtain some 400,000 carbon credits, which count against greenhouse gas emissions.
The World Bank launched the BioCarbon Fund in May 2004 to deliver cost-effective emission reductions while promoting biodiversity conservation in developing countries.
The fund builds on the so-called Kyoto mechanism, which allows industrial countries to invest in emission reduction projects in developing countries and earn carbon credits to help achieve their emission reduction targets under the Kyoto Protocol.