Two power plants in Jiangsu province have launched China's first inter-city trading scheme for sulphur dioxide emissions, reported South China Morning Post. Gang Environmental Power Co of Taicang will pay Yn1.7m to Nanjing's Xiaguan Power Plant for the right to emit an extra 1,700 tonnes of sulphur dioxide annually. Emissions from the Taicang plant exceed provincial emissions standards by more than 2,000 tonnes a year, while the Nanjing plant is well below its quota.
The newspaper said the move could be the basis for a nationwide programme to reduce emissions and cut pollution. Jiangsu was chosen because it has a provincial trading law and an efficient permit system.
In a separate development, the Chinese government has formally approved a trial scheme for emissions trading between Hong Kong, Macau and Guangdong. Under this voluntary scheme, power companies from the SARs will be able to invest in emissionsreduction programmes conducted by Guangdong electricity generators. In return, they could sell emission credits to plants that failed to meet their quota requirements. The scheme could be launched within three years.