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China Daily Website

SH issues detailed rules on carbon emission trading

Updated: 2013-11-20 23:44
( Xinhua)

SHANGHAI -- Shanghai rolled out Wednesday a detailed scheme for carbon emission trading, following Shenzhen's response to the central government call to cut emissions.

To cut emissions and to promote a carbon trading market, the municipal government of Shanghai will record emissions and allocate quotas. The quota will take into account historical emission levels, industrial characteristics and efforts by enterprises to go green.

Under the trading program, companies which belch out more than their fare share will be able to buy unused quotas on the market from companies which pollute less.

The market will be based in the Shanghai Environment and Energy Exchange(SEEE). The SEEE will spell out risk management regulations on emission trading, put limits on price fluctuation and the amount quota one can buy.

Sanctions will be set up and violators will face fines starting from 10,000 yuan ($1,683).

Shenzhen launched a carbon trading scheme in June, the country's first. The National Development and Reform Commission, the top economic planning agency, has approved pilot carbon emission trading schemes in Beijing, Tianjin, Shanghai, Chongqing, Hubei and Guangdong.

China will reduce carbon emissions 40 to 45 percent per unit of GDP by 2020, in comparison with 2005.

 
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