China’s Tianjin Starts Carbon Trading at Half Guangdong’s Price
China’s northern municipality of Tianjin started carbon trading at prices less than half of what companies in the southern province of Guangdong are paying.
Five trades for 45,000 metric tons of carbon were done for as much as 28 yuan ($4.61) a ton on the Tianjin Climate Exchange, according to a statement on its website today. Permits on the China Emissions Exchange in Guangdong, the world’s largest after the European Union, sold last week for as much as 61 yuan, the highest in the nation.
China, the world’s biggest emitter of greenhouse gases linked to climate change, began carbon markets in five regions this year as it seeks to cut carbon intensity, a measure of pollution compared with gross domestic product. The country plans to expand trading to seven regions and introduce a nationwide program after 2015.
Companies participating in Tianjin included units of China Huaneng Group Corp., China National Petroleum Corp., Citic Securities Co. and Hanergy Holding Group Ltd.
Tianjin’s exchange caps emissions from 114 companies in the steel, chemical, power, petrochemical, oil and gas industries, according to the statement.
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