Carbon trading pilot's operating details revealed

The Shenzhen Carbon Exchange announced details of its carbon trading scheme on Tuesday in advance of the pilot program’s launch next month, Financial Times reported. The exchange said the trading scheme would cover 635 industrial and construction companies, accounting for 38% of Shenzhen’s total 2010 emissions. China plans to roll out seven such pilots by 2014 in pursuit of a 40% reduction in the country’s carbon emissions relative to economic output by 2020 compared to 2005 levels. The Shenzhen exchange said it would use automatic calculations to assign quotas to avoid human error and corruption in the quota allocation process.