China Poised to Launch Much-Anticipated Carbon-Trading Project


China has revealed details of a carbon cap-and-trade pilot project that will be launched next month, a much-anticipated market attempt to rein in carbon dioxide emissions by the world’s biggest emitter.

The first phase of the program, which will be implemented in the southern city of Shenzhen, will cover 638 companies that produce 38 percent of the city’s carbon emissions, according to the city branch of the government’s National Development and Reform Commission (NDRC).

The system will impose caps on the companies’ CO2 emissions and establish a market for the buying and selling of emissions permits. Eventually, the program will be expanded to include the transportation, manufacturing, and construction sectors, the Guardian reports. By 2014, the experimental scheme will be expanded into six other designated cities and provinces, including Beijing, Tianjin, Shanghai, Chongqing, and the provinces of Hubei and Guangdong. Earlier this week, the Chinese newspaper 21st Century Business Herald reported that the NDRC is contemplating a nationwide system to control CO2 emissions by 2020.

Article appearing courtesy Yale Environment 360.

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Yale Environment 360 is an online magazine offering opinion, analysis, reporting and debate on global environmental issues. We feature original articles by scientists, journalists, environmentalists, academics, policy makers, and business people, as well as multimedia content and a daily digest of major environmental news. Yale Environment 360 is published by the Yale School of Forestry & Environmental Studies and Yale University. We are funded in part by the Gordon and Betty Moore Foundation and by the John D. and Catherine T. MacArthur Foundation. The opinions and views expressed in Yale Environment 360 are those of the authors and not of the Yale School of Forestry & Environmental Studies or of Yale University.

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