Thursday, June 20, 2013

China Launched Its First Pilot Carbon Emission Trading Scheme in Shenzhen

The first of seven pilot carbon emission trading schemes for China was launched in the city of Shenzhen, China on 18 June 2013. It is worth noticing that China is the largest carbon gas emitter of the world. 

Shenzhen which is situated across border from Hong Kong is among the Special Economic Zones (SEZs) of China. It houses 11 million residents. China committed to bring down the carbon emission intensity by 21 percent by the year 2015. 

The power plant of the Shenzhen Energy Group sold the emission permit for 10000 tonnes to Guangdong arm of state oil group PetroChina for Rmb28 per tonne or 5 US dollar a tonne, and another 10000 tonnes to Hanergy, a privately owned power generator and solar-panel maker for a price of Rmb30 a tonne. This implies that China has established a carbon market. 

Carbon markets are the ones which enable the companies to buy permits for emitting carbon dioxide from those companies which burn less carbon. This mechanism is aimed at encouraging the companies for reducing pollution as well as invest their money in the cleaner technologies. 

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