CIG: China takes its first tentative steps toward a carbon emissions trading market.

Jan. 5, 2010 - PRLog -- CIG has been informed that 30 companies are currently negotiating the framework for China’s first carbon emissions trading market.

The Tianjin Climate Exchange, a joint venture between the China National Petroleum Exchange Corporation, the Tianjin Property Rights Exchange and the Chicago Climate Exchange, is seeing businesses including Bayer, Motorola, and many Chinese electricity utilities charting a voluntary cap and trade system.

CIG understands that it has been reported that the Peoples Bank of China, the nation’s central bank, is handling the design and implementation of the financial tools necessary for such trading.

A representative of the Chicago Climate Exchange was recently quoted as saying that “really there’s no pressure, no obligation,” as companies would be in a position to walk away if they believe the caps were too stringent or if they weren’t content with the trading rules.  

Most of the participating firms are based in Tianjin, a major city 80 miles to the South East of Beijing.

Participating businesses are aiming to take advantage of the potential of  being emissions trading ready should this pilot project grow into a national or even global trading entity, “Low carbon economy is on TV everyday, so if you are a manager running a 3,000 employee operation in China, and you don’t pay attention to this low carbon drive, you should be fired,” CIG believes the Chicago Climate Exchange representative was quoted as saying.

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