The city of Tianjin in North China began carbon emissions trading on 26 December 2013. The first five deals amounted for about 45,000 tons completed on the first day with a price of 28 Yuan/ton (US$4.6/ton), according to the Tianjin Climate Exchange.
An initial 114 companies from the power, iron and steel, chemical, petrochemical, and oil and gas extraction industries have been included in the quota allocation corresponding to all the companies having emitted more than 20,000 tons of carbon dioxide since 2009. Under the trading program, companies that emit more than their fair share of emissions will be able to buy unused quotas on the market from firms that pollute less.
Tianjin is the fifth trading market started in 2013 in China, following Beijing, Shanghai, Shenzhen and Guangdong. China, the world’s biggest emitter of greenhouse gases, intends to build a nationwide carbon trading market to reach its target for reducing carbon intensity by 40-45% by 2020, compared with 2005.
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