China expands carbon emissions trading scheme

November 26, 2013
Labourers work in a coal chemical factory in Huaibei, east China's Anhui province on August 14, 2013

China's commercial hub Shanghai began carbon emissions trading on Tuesday, as the nation which is the world's biggest carbon emitter expands a pilot scheme.

Shanghai is the second Chinese city after Shenzhen to trade carbon to try to limit emissions, with the capital Beijing to follow later this week, state media said.

Under the scheme, companies which exceed their quota of can buy unused allocations from others—providing a market incentive to control pollution.

But the official Xinhua news agency said only 191 companies were taking part in Shanghai, a huge city of 23 million people. They included firms from the steel, chemical and aviation sectors, it added.

Analysts say the scheme's limited range means it is unlikely to have much impact.

The Shanghai government has set annual carbon emissions quotas for the companies for 2013-2015, but has not publicly revealed them.

Participating firms could face fines of up to 100,000 yuan ($16,400) and lose government subsidies if they fail to abide by the scheme, the Shanghai Daily newspaper said.

On the first day of trading, the market conducted three transactions for 5,000 tonnes, 4,000 tonnes and 500 tonnes, the Shanghai Environment and Energy Exchange said, at prices from 25 to 27 yuan per tonne of carbon.

Steam rises from a power station in Beijing on December 5, 2012

The exchange in a statement praised carbon trading as a "major mechanism to promote energy conservation and reduce emissions", according to a statement.

China has approved in seven locations, including the cities of Tianjin and Chongqing, as well as Hubei and Guangdong provinces.

Carbon dioxide (CO2) is among the greenhouse gases which contribute to global warming and climate change.

Because of its reliance on coal and heavy industry, China has emerged as the world's top producer of carbon emissions, ahead of the United States.

China has no targets to reduce total carbon emissions and government officials have said they will continue to rise until around 2030.

Explore further: China 'launches its first carbon trading scheme'

Related Stories

China set for carbon pricing

October 11, 2013

As Australia moves to scrap its pioneering carbon-pricing scheme, China is expected to have seven pilot pricing systems in place no later than 2015, followed by a national scheme, according to a new survey from The Australian ...

China plans carbon-trading pilot scheme

July 18, 2011

China will introduce a pilot scheme for carbon emissions trading and gradually develop a national market as the world's largest polluter seeks to reduce emissions and save energy, state media said.

Carbon emissions still growing when they must fall: report

November 19, 2013

Growth in global carbon emissions is slowing, but is still more than enough to increase global temperatures by more than 2C, according to a report released today by the Global Carbon Project. Carbon emissions increased by ...

Recommended for you

Scientists solve mystery shrouding oldest animal fossils

March 25, 2019

Scientists from The Australian National University (ANU) have discovered that 558 million-year-old Dickinsonia fossils do not reveal all of the features of the earliest known animals, which potentially had mouths and guts.

Earth's deep mantle flows dynamically

March 25, 2019

As ancient ocean floors plunge over 1,000 km into the Earth's deep interior, they cause hot rock in the lower mantle to flow much more dynamically than previously thought, finds a new UCL-led study.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.