China’s southeastern Fujian province will set up an energy savings credit market for electricity producers and manufacturers that consume more than 5,000 tonnes of standard coal per year, state media reported.

Government officials are drawing up rules and regulations for the market, which is likely to start as a pilot, covering electricity as well as cement, paper and steel production from the outset, according to China Electricity News.

The report did not say when the scheme would be launched.

The local government wants to use the energy efficiency scheme to cut carbon emissions as well as local air pollutants.

Fujian, home to some 38 million people, has sizeable petrochemicals, machinery and electronics industries. Its GDP surpassed 2 trillion yuan ($326 billion) in 2013.

Earlier this year, Jiangsu province said it would launch an energy savings scheme that will be linked to the national ETS when it opens in late 2016 or early 2017.

By Stian Reklev – stian@carbon-pulse.com

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