China’s southern province of Guangdong will cap emissions from more sectors and lower a threshold to include more companies to expand its carbon market, Reuters reported.
The province will add sectors including ceramics, textiles, non-ferrous metals, plastics and paper production and is considering coverage of public buildings and transport industries in the market, the report said, citing the provincial Development and Reform Commission. Guangdong will cut the threshold to include companies that emit more than 10,000 metric tons of carbon annually from 20,000 tons now.
Emissions trading, set to begin tomorrow in Guangdong, caps emissions from 242 firms from power, iron and steel, petrochemical and cement industries, the commission said Nov. 26. The province sold 3 million tons of carbon permits for 60 yuan a ton in its first auction on Dec. 16.
Guangdong will allow companies to use offsets, known as Chinese Certified Emissions Reductions, for 10 percent of their obligation, and 70 percent of the offsets are required to come from projects located in the province, Reuters said.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at firstname.lastname@example.org
To contact the editor responsible for this story: Reed Landberg at email@example.com