Information on Funding for Coal Bed Methane Gas Development
Coal bed methane is a byproduct of the natural formation of coal beds caused by the compression and heating of plant materials from ancient swamps and marches. Methane gas would be released into the Earth's atmosphere as a greenhouse gas if not captured and used as a power source.
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Methane
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The development of CBM natural gas as a source of power is centered in the U.S. in the states of Wyoming and Montana's Powder River Basin. During the development stage, CBM projects can benefit from tax credits available from local governments within the U.S.
Funding
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Funding sources for CBM development include multilateral and bilateral funding institutions, such as the World Bank and Asian Development Bank. Traditional funding from investors and through loans are often available where a CBM project can show projections of extensive profits that outweigh proposed debt levels.
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Carbon Credits
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Because methane is classed as a greenhouse gas funding for the development of CBM projects can be found in carbon credits purchased by individuals offsetting their carbon use. The regulated carbon markets formed under the Kyoto Protocol allow developed nations and nations with economies in transition to purchase carbon credits in projects such as CBM to meet carbon emission reduction levels called for in international treaties.
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