Hubei to expand emissions trading scheme

Published 08:57 on March 8, 2015  /  Last updated at 15:35 on May 11, 2016  / Stian Reklev /  Asia Pacific, China

China’s Hubei province will add 48 companies to its emissions trading scheme this year in a bid to boost its carbon market, a government-owned paper reported on Saturday.

China’s Hubei province will add 49 companies to its emissions trading scheme this year in a bid to boost its carbon market.

Hubei Daily on Saturday quoted an unnamed government official saying a new batch of companies would be brought into the scheme, but did not offer further details.

The Hubei government on Wednesday confirmed on its website that 49 new companies would be brought into the ETS.

The news came just days after Premier Li Keqiang told the National People’s Congress that China would actively expand its pilot carbon markets in 2015.

The Hubei scheme is the second biggest of China’s seven pilot carbon markets, with 324 million permits issued in 2014. Participants must hand over permits to the government to cover for last year’s emissions by the end of May.

According to the article, 24 companies had yet to be allocated their permits for 2014.

The scheme currently covers 138 power generators, iron and steel manufacturers, cement factories, chemical companies, automakers, metals producers, and paper and glass firms, and is the most liquid of the pilot markets.

On Friday, spot Hubei Emission Allowances (HBEAs) closed at 25.44 yuan ($4.06) on the China Hubei Emission Exchange, with 32,100 permits changing hands.

Updated on Mar. 11 to correct number of new companies to 49 from 48, and show that the Hubei government has confirmed the expansion.