Eight carbon-trading deals were made during the launch of the China Shenzhen Emission Exchange, selling more than 20,000 carbon credits. This marks the first official launch of a pilot compliance carbon trading market in China and initial carbon prices ranged between 28 yuan (US$4.4) per ton to 32 yuan per ton.
Shenzhen Energy Group’s Dongbu Power Plant sold credits for 2,000 tons of allowances to Guangdong CNPC International Affairs Co. and Hanergy Holding Group, at prices of 28 yuan per ton and 30 yuan per ton, respectively, marking the first deals of its kind in China. Pilot carbon emission trading schemes in Beijing, Tianjin,Shanghai, Chongqing, Hubei and Guangdong are expected to be launched shortly.
The scheme covers 635 industrial companies and some public buildings that account for about 40 percent of the city's carbon emissions. CDM project owners and and investors who have opened accounts at China Shenzhen Emission Exchange will be able to conduct carbon trading on the exchange. 100 million tonnes of carbon emission allowances will be allocated to the 635 enterprises over the next three years, based on their previous emissions and industrial added values.
Participants that emit less than their allowance can trade the remainder through the carbon-trading market, creating a cap-and-trade system. If a firm’s emissions exceed its allowance, it must buy credits or face penalties.
The sellers in the first eight deals were mandatory participants in the carbon program, and had all received allowances. Buyers included program participants and investors.