China Would Regulate UN Carbon Credits at Home, Exchange Says

China probably won’t allow United Nations carbon credits in its cap-and-trade program unless they are approved by a domestic regulator, according to an official at the Shanghai Environment & Energy Exchange.

China likely will develop its own registration and verification process for so-called offset credits, which would be eligible for compliance with the country’s emission-reduction quotas, Li Jin, a researcher at the exchange, said at a carbon conference in Shanghai. The bourse is helping to design emissions trading in China’s financial center.