Shenzhen Hits Quota in it’s First Carbon Exchange Auction Program
Last Friday, Shenzhen became the third city in China to have a carbon exchange auction after Beijing and Shanghai. The auction was launched online on the Shenzhen Carbon Trade Exchange website and saw a total of more than 74,000 of carbon quotas sold for 2.65 million yuan. There were 94 local enterprises under the carbon emission control that are bidding for the 200,000 of carbon emissions of 2013. The carbon quotas were traded at 35.42 yuan per ton.
The city listed around 635 carbon intensive companies and has imposed emission caps on all of these companies and has required them to hold a sufficient tradeable carbon allowances in order to meet the government imposed emission standards. Emissions coming from these companies accounted for 40 percent of the carbon emissions in the city. Based on the trading program, companies that emit below their quotas can sell their excess limits to other companies and investors for profit.
According to the vice president of the Shenzhen Carbon Trade Exchange, the auction went very well and the set price of 35.43 yuan per ton was appropriate. This was the first time of the city to host an auction for carbon trade and the city will be further introducing institutions and individuals to carbon trade auctions in the future.
Since its establishment in June 2013, the Shenzhen Carbon Trade Exchange has already sold 470,000 tons of carbon quotas ranking it third in China.