Guangdong Plans to Include New Industries in Carbon ExchangeBloomberg News
Local exchange examines six industries for possible inclusion
Guangdong plans carbon-trading cooperation in South China
China’s southern province of Guangdong is planning to expand the number of industries to be included in its carbon-trading exchange amid steps to integrate the regional trading program into planned national emissions exchange.
China Emissions Exchange, which overseas carbon trading in every part of the province except the city of Shenzhen, has finished looking at the greenhouse gas emissions of six industries including ceramics, civil aviation and papermaking ahead of possibly including the industries in the program, President Ye Jun said.
Next, economic-planning authorities at both the provincial and national levels will determine the number of new industries and key emitters to be added, he said in a phone interview on Wednesday. The exchange currently covers more than 180 companies in four industries including power, cement, steel and petrochemicals, Ye said.
The additions would be a way of preparing ahead of the national carbon-trading program which the government said will cover eight sectors. China wants to start the national pollution-trading system in 2017 to cut global-warming emissions.
The national system will be developed using a cap-and-trade rule, under which the biggest corporate polluters buy credits from those that don’t pollute as much. The idea is that the emissions-trading system prompts companies to cut their emissions so they can sell their unused allocations.
The exchange is one of seven pilot projects initiated by China. China Beijing Environment Exchange, another pilot, expects to more than double the number of companies included in the city’s market.
China Emissions Exchange is also planning to push carbon-trading cooperation in the Pan-Pearl River Delta region, including nine Chinese provinces along with Hong Kong and Macau, said Ye.
— With assistance by Feifei Shen