Carbon Trading Program Saw Largest Turnover in the Carbon Trading Market
Out of the 635 enterprises that are participating in the carbon trad pilot program have already met their emission goals last year and the total turnover in the city’s carbon trade have already exceed 100 million yuan by July 1 the highest turnover for the nation based on the city development and reform commission.
Carbon trading refers to the trading system that is used to control emissions of carbon dioxide that the government has set a limit of the amount of carbon that an enterprise can emit into the air. Almost all enterprises have participated in the carbon trading program for next year and the city is now planning to include public transportation into the carbon trading program. These 635 enterprises are mostly power companies and plants in the manufacturing sector that has a total carbon emission of 3.83 tons for 2013 or 11 percent more compared to 2010. For this year the around eight power plants have already reduced their carbon emissions by 3 tons.
One of the largest buyer of carbon credits is Vitaestic a multinational company that paid around 3.5 million yuan for the offset f 48,000 tons of extra carbon emission. While other enterprises such as Skyworth earn millions by selling off their remaining credits. These participating enterprises can get carbon emission allowances based on their previous emissions and added economic values. Enterprises that has less emissions than their allowance can trade the remaining credits in the carbon trading market. But if an enterprise exceeds its allowance they should purchase extra credits in the market. Furthermore the city is now planning to implement certain provisions to punish large emitters that fail to meet emission goals.