NAY PYI TAW -- Myanmar Ministry of Environmental Conservation and Forestry (MOECAF) and China's Sunshine Kaidi New Energy Group Co Ltd of China on Monday signed a memorandum of understanding (MoU) on Clean Development Management project.

At the signing ceremony held in Nay Pyi Taw, the MoU was inked by U Tin Tun, director general of Planning and Statistics Department of MOECAF and Tao Zepu, head of Carbon Division of Sunshine Kaidi New Energy Group Co Ltd.

U Tin Tun said in his speech that the MoU is the first step of initiative between his department and Kaidi on Clean Development Mechanism (CDM) consultancy service and it is intended to cooperate with each other to develop CDM market and to contribute to Sustainable development in Myanmar.

The Scope of cooperation under this MoU includes the following activities: CDM advocacy and public awareness raising, analysis of sectoral CDM potential of Myanmar, identification of CDM projects, finance of transaction fees and develop CDM projects, CDM rules and regulations-technical aspect, he added.

The objectives of the MoU is to collaborate with each other serving the utility goal of developing CDM market in Myanmar.

Tao Zepu said that this MoU will also enhance the cooperation between China and Myanmar in environmental conservation area.

The CDM is one of the flexibility mechanisms defined in Kyoto Protocol.

This mechanism has been designed to control the growth of green house gas emission, by transferring funds and technology from industrialized countries to developing countries targeting emission reduction projects and was considered as one of the most effective tools which can be used to fight against the global warming and pollution.

Kaidi, a leading group in renewable energy industry, was established in Wuhan, China's Hubei province in 1992.

Meanwhile, 70 percent of Myanmar's population live in rural area. A family with five members utilizes 2.5 tons of fuelwood per year for daily cooking and over 90 percent of rural community cook their food with open stove wasting 40 percent of heat.