Chinese city of Shenzhen has started the first of seven pilot emission trading schemes planned for China, the world's largest greenhouse gas emitter, UPI reported. Shenzhen, across the border from Hong Kong, is one of China's Special Economic Zones and is home to about 11 million permanent residents. It has committed to reduce the emissions intensity of its economy by 21 percent below 2010 levels by 2015. Shenzhen's scheme, inaugurated on Tuesday, covers 635 companies in 26 sectors -- including industrial, manufacturing, electricity, natural gas and water supply -- with emissions above 20,000 tons of CO2 equivalent, Renew Economy reports. Together, those companies in 2010 discharged 31.7 million tons of greenhouse gases, 38 percent of the city's total, figures from Bloomberg New Energy Finance indicate. Under the scheme, emission permits at first will be allocated to companies for free. Those that pollute more than they are allowed will have to buy credits from companies that reduce emissions below the government-set targets. China's six other planned pilot emissions trading schemes planned to begin this year -- in Beijing, Chongqing, Guangdong, Hubei, Shanghai and Tianjin -- together are expected to regulate 800 million to 1 billion tons of emissions by 2015, Bloomberg New Energy Finance said. That would be the world's biggest cap-and-trade program after Europe's, which covers 2.1 billion tons among 31 countries and accounts for more than three-quarters of global carbon trading.
