BEIJING, March 25 China's central Hubei province
will launch its carbon trading market on April 2, its emissions
exchange said Tuesday, a move that could cap carbon dioxide
emissions from nearly 140 of its biggest companies.
The Hubei market will be China's sixth of seven planned
regional emissions trading schemes as the world's
biggest-emitting nation steps up its efforts to limit its impact
on climate change. The seventh exchange will be in the
southwestern Chinese city of Chongqing, which is also scheduled
to go into operation this year.
The launch date will mark the opening of secondary trading
for companies covered by the scheme, but the government plans to
auction an unknown number of permits ahead of that date although
details are yet to be sorted out, Wang Hai, vice general manager
at the China Hubei Emissions Exchange, told Reuters.
Hubei had originally planned to launch the market this
month, but said two weeks ago it had delayed it.
The province will issue around 300 million permits for the
year 2014, making it China's biggest emissions market after
Guangdong. Nine million permits will be auctioned, a further 21
million will be withheld in a government adjustment reserve,
while the rest will be handed out to scheme participants for
Companies that emit more CO2 than they have permits to cover
for must buy allowances in the market or in the government
Among the companies participating in the scheme will be
Wuhan Iron and Steel, China's fourth-biggest steel
(Reporting by Kathy Chen and Stian Reklev; Editing by