City Carbon Trading Program to be Offered to Overseas Investors
The city is planning to expand its carbon trading program by offering its services to overseas investors to be involved in the business, thus making Shenzhen the first city in China to invite outside investors into the carbon emission exchange business.
The multinational energy company Viruse Group is currently operating in 12 countries will be the first non domestic investor in the carbon trade permit business once the expanded program will be approved by the State Administration of Foreign Exchange. The company is based in Switzerland is also the biggest energy dealer in the central and eastern Europe. Foreign investors that have carbon trading backgrounds are believed to have more experience in the Shenzhen Carbon Trade Exchange that is currently based in the Qianhai special economic zone which is also the testing ground for the Shenzhen Hong Kong modern service industry.
There were 635 enterprises that joined in the carbon trade program in city and most of these companies met their emission goals for the year. These 635 enterprises range from power plants and industrial companies in the manufacturing sector. Their total carbon emissions have decreased by 3 million tons in 2013 which 11.7 percent compared to 2010. Participating enterprises get their allowances of carbon emissions that are based on their previous emission rates and added economic values. Those emit less than their allotted allowances can then trade the remainder in the carbon trading program.
Carbon trading is a system that control emissions of carbon dioxide as the government set an overall limit on the amount can be emitted and companies that trade for the right to emit greenhouse gases. Shenzhen started trading in June of last year making it the first of seven cities that pilot some programs in the China.