Chinese state-owned oil and gas company Sinopec has traded nearly 3.9 million allowances in the Chinese pilot carbon markets so far, a company official said, roughly 10% of the volumes that have traded on the seven exchanges and OTC so far.

The company has 26 subsidiaries covered by the seven pilots and they have been involved in allowance trades worth 140 million yuan ($22.5 million), Ge Chenghui, director of Sinopec’s energy management and environmental protection department, told a conference in Beijing.

Sinopec made a profit from the deals, he said, but would not reveal how much.

Many state-owned enterprises (SOEs) have been missing from the carbon market, with executives often slow to approve funds to buy carbon allowances, even when they have been needed for compliance.

But Sinopec has attempted to be proactive as part of its future strategy to maintain competitiveness, according to Ge.

“We want to keep up with top global competitors like Shell, which are competing in the financial market with better energy structure and efficiency. We can’t only play by the rules set at home, in case one day our export products gets taxed on their carbon footprint,” he told reporters on the sidelines of the conference.

By Stian Reklev – stian@carbon-pulse.com

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