| BEIJING, March 25
BEIJING, March 25 Companies covered by the
carbon emissions trading scheme in China's fast growing city of
Shenzhen saw a surplus of 3 million permits in the first year of
the market, vice mayor Tang Jie said, meaning around 10 percent
of the allowances were unused.
The scheme, the first of seven pilot carbon markets launched
to put the brakes on China's rapidly rising greenhouse gas
emissions, regulates carbon emissions from more that 600 power
generators and manufacturers.
The city issues permits to companies and those that have a
surplus can sell them while those that emit more than the
permits allow have to buy more on the market. A surplus, if
carried forward, could undermine prices next year and reduce the
incentive for firms to cut emissions.
"We are studying measures to cancel the verified surplus,"
Tang told local newspaper 21st Century Business Herald on
He said the companies, which reported their emissions to
the city government of the southern industrial hub near Hong
Kong last week, had a 3 million permit surplus for 2013.
The city has not published the historical emission levels of
the participating companies, so it was not immediately clear
whether scheme participants had cut carbon dioxide emissions or
whether the market had been allocated too many permits.
Shenzhen has previously said it plans to allocate around 100
million permits over the 2013 to 2015 period, meaning the 2013
emissions stood at around 30 million tonnes of carbon dioxide.
Tang said Shenzhen plans to include buildings and transport
in the scheme, bringing the share of the city's emissions
covered by the market to 60 percent, but did not give a date.
He also said Shenzhen is keen to link its market to
international emission schemes, although the central government
has said China is unlikely to do so before 2020.
He said he expected Shenzhen, which has a population over 10
million, to see its carbon emissions peak in 2017 or 2018, a
full decade before China's national emission levels.
China, the world's biggest greenhouse gas emitter, is
launching the seven regional pilot markets ahead of a national
market later this decade as a key policy to meet a target of
cutting its emissions per unit of GDP to 40-45 percent below
2005 levels by 2020.
Shenzhen permits closed at 81.90 yuan ($13.23) on Monday,
the most expensive of the five Chinese markets launched so far.
($1 = 6.1888 Chinese Yuan)
(Reporting by Stian Reklev and Kathy Chen; Editing by Anthony