Seven Cities To Start a Carbon Trading Program by Next Year
Shenzhen is among the seven cities and provinces that will be starting a carbon trade pilot program next year that is aimed to cut carbon emissions by 21 percent. Other areas are Beijing, Shanghai, Tianjin, Chongqing, Hubei and Guangdong.
Around 800 enterprises from 26 industries in Shenzhen with carbon emissions that exceed 20,000 tons a year will be participating in the pilot program and these 800 enterprises accounts for at least 54 percent of the city’s total emissions. These participating enterprises will be getting allowances or rations of carbon emissions that is based on their previous emissions and their economic added values. Any enterprises that emit less that their allowances can trade their remaining allowances in a carbon trading market.
When an enterprise exceeds their allowance they must buy credits in the carbon trade market or else risk facing fines twice the value of the extra emissions and will be forced to make up for the excess by getting a smaller allowance for emissions the following year. Implementing a carbon trading system the city will be cutting its emission by 21 percent or nearly 16 million tons by 2015.
Carbon trading is a system that controls emission of carbon dioxide wherein governments sets a limit on the amount of carbon emitted.