as part of the country’s greenhouse gas emissions pilot scheme, a carbon trading trial project supported by shanghai environment and energy exchange will be launched next year.
according to the shanghai environment and energy exchange, 200 enterprises will join the trial as the first batch including baosteel group and shanghai petrochemical company.
the national development and reform commission approved the greenhouse emissions rights trading pilot last november.. shanghai was one of the seven provincial regions to establish the scheme.
carbon emission trading has its roots in the kyoto protocol, an international agreement to reduce levels of industrial gases believed to cause climate change. it is important to boost energy conservation and emissions reductions, as well as to encourage green initiatives.
china has pledged to reduce carbon dioxide emissions per unit of gdp by 40 to 45 percent by 2020 compared to the level in 2005 and cut down the energy consumed per unit of gdp by 16 percent from 2011 to 2015.
china has made much effort to reduce carbon emissions through policies in the past but at great costs. it can help reduce emission reductions costs through market trading.
