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China Market Insider CO2-Emissions Trading will Change China’s Chemical Industry
China’s chemical industry has begun trading CO2 emissions. Analysts expect emissions trading to have a ‘profound impact on the competitiveness of chemical companies in China’ over the next five years, reports the China edition of PROCESS.
Beijing/China – State-owned chemical company Sinopec has purchased more than 200,000 metric tons of CO2 credits for its captive power plants. The deal took place on the opening day of the new nationwide emissions exchange in Shanghai, China.
The new national Emissions Trading Scheme, or ETS — China’s first nationwide carbon emissions exchange — officially began operations in Shanghai on July 16. Initially, only power generators are participating. But the 2225 listed power plant operators — primarily subsidiaries of large state-owned enterprises — collectively emit more than four billion tons of greenhouse gases into the earth’s atmosphere. That’s about 40 percent of all China’s emissions. This immediately made the exchange the largest of its kind in the world from its very first day.