Shenzhen sets date for the start of carbon emissions trading
Shenzhen, the Chinese Special Economic Zone and across the border from Hong Kong, will open carbon emissions trading market on Monday 17 June, according to city’s mayor. While Beijing and Shanghai may also start their carbon markets in June, Shenzhen is the first to set a specific date.
China, the world’s biggest emitter of green house gasses, has approved pilot programs to cap and trade emissions in seven manufacturing centers as part of its plan to reduce greenhouse gases per economic unit by as much as 45 percent before the end of the decade. The nation will regulate 800 million to 1 billion metric tons of emissions by 2015, creating in the world’s biggest cap-and-trade program outside of Europe.
Shenzhen will initially include 635 companies in its cap-and-trade program, Mayor Qin Xu told the Shenzhen Daily. Those companies discharged 31.7 million tons of greenhouse gases in 2010, 38 percent of the city’s total, according to BNEF. Pilot programs for carbon trading are also scheduled to open this year in Guangdong, Tianjin, Chongqing and Hubei.Emission allowances are set to trade on the China Shenzhen Emission Exchange, said Charlie Cao, a Beijing-based analyst at Bloomberg New Energy Finance. Allowances have already been allocated to Shenzhen emitters, and the exchange is exploring how to develop futures based on the permits, he said.