In recent times, the country of China has become the largest energy consumer in the world. Due to this fact, the country is now making efforts to cut on the greenhouse gas emissions by rolling out a series of trial pilot programs. Companies in China that encountered very low environmental costs for a long period of time, will now have to find new ways to cut carbon dioxide emissions.
Necessary measures to do so must be taken soon, as the market mechanism is just around the corner. The Chinese first pilot carbon-trading program to cut greenhouse gas emissions will make an official debut on June 18, 2013, in Shenzhen. Shenzhen is a southern city in Guangdong province that has been a leader in the reforms of China.
The upcoming Shenzhen pilot program is expected to accelerate the launch of pilots in other regions. Four other cities have been designated by the central government, including Beijing and Shanghai. Moreover, two more provinces are expected to roll out the program by 2014.
It has been reported that 635 companies in Shenzhen account for about 38 percent of the city’s total emissions. These companies will then be included in the experimental program. Shenzhen, using the 2012 baseline of carbon dioxide emissions of 31.73 million tons, will issue 100 million tons of free emission allowances to the companies which comply with this program between 2013 and 2015.