Carbon Trading Gains In Popularity

　　China's electricity generators, which account for 40 percent of thecountry's carbon emissions, are stepping up their efforts at improving energyefficiency and emission reduction through a market-driven, pilot carbon tradingsystem.

　　Wang Zhixuan, secretary-general of China Electricity Council, told acarbon-trading summit in Beijing that in the past electricity companies havelargely adopted a "wait-and-see" approach to the practice.

　　But now some of them are actively increasing their involvement in thecarbon-trading market, as changes to the regulatory landscape and demand forcleaner power sources force them to follow a different path of growth.

　　Carbon trading is a practice designed to reduce overall emissions of carbondioxide and other greenhouse gases by providing regulatory and economicincentives.

　　"China has been vigorously promoting a market-oriented carbon-tradingmechanism. Though currently at a very early stage as a pilot program, thecountry is now pushing for a national market," he said.

　　Under the planned trading program, carbon dioxide emissions from emittingsources will be capped, and those that emit below their quotas can sell theirexcess to other enterprises or even to investors as new sources of revenue.

　　Electricity companies will have to put more effort into cutting carbonemissions either through buying quotas on carbon-trading exchanges or upgradingtheir own energy-efficiency technology, Wang said.

　　"Either way, this will be good for our efforts at lowering direct-coalutilization and stimulating the economy by upping productivity."

　　Council figures show that carbon emissions were reduced by 4 billion metrictons between 2005 and 2012.

　　Hou Chunfeng, a consultant at Beijing Tian Run New Energy Investment Co Ltd, afully-owned subsidiary of the listed Xinjiang Goldwind Science and Technology,said it had been helping various electricity power giants reduce theiremissions through carbon trading.

　　Seven pilot carbon markets have opened so far in China, and have witnessed ahigh degree of compliance by emitters including power companies andmanufacturers, according to the State Grid Energy Research Institute.

　　Up to October, national carbon trading volumes had hit about 14 million metrictons with transactions worth about 500 million yuan ($80.39 million)

　　"The volumes are not that big so far, but the good thing is that thesecompanies are more interested and committed to the trading process," saidHou.

　　Su Wei, director general of Climate Change at the National Development andReform Commission, said that the government will continue to push low-carboneconomic development in the upcoming 13th Five-Year Plan (2016-20), finalizingregulations and policies for what will be the world's biggest emissions tradingprogram.

　　China has pledged to reduce its carbon emissions by 40-45 percent per unit ofGDP by 2020, compared with 2005 levels, Su said.

　　(Source: China Daily)