Akin to a breath of fresh air for Hong Kong and in line with Chinese premier Xi Jinping’s declaration to address environmental issues, the Chinese Government recently announced the launch of its first carbon trading scheme pilot project in Shenzhen.
This is to encourage companies to reduce carbon emissions by setting a limit (a cap) on the level of carbon dioxide that can be emitted in a region.
Scheduled to be rolled out by 2014, the scheme could be spread across the country after 2015.
The Shenzhen Carbon Exchange will also launch this month and will cover 635 industrial and construction companies, as well as transport firms and major companies that consume oil, gas, coal and power.
China will also pilot the scheme in six other places across the country – Beijing, Shanghai, Tianjin, Chongqing and the provinces of Hubei and Guangdong.