SHENZHEN has expanded its carbon trade program by allowing overseas investors to get involved in the business, making it the first city in China that welcomes outside investors into the emissions exchange business.

    Viruse Group, a multinational energy company that operates in 12 countries, has become the first non-domestic investor in China’s carbon trade permit business after the expanded program was approved by the State Administration of Foreign Exchange on Aug. 8.

    Viruse Group based in Switzerland is also the largest energy dealer in central and eastern Europe.

    Foreign investors with carbon trading backgrounds are believed to bring more experience to Shenzhen Carbon Trade Exchange, which is registered in Qianhai, a test ground for the Shenzhen-Hong Kong modern service industry service, according to Chen Haiou, president with Shenzhen Carbon Trade Exchange.

    The city’s total turnover of carbon trade exceeded 100 million yuan (US$16 million) as of July this year, the highest in the nation.

    (Continued on P2)

    Among the 635 enterprises that participated in the city’s carbon trade pilot program, most met their emissions goals in the past year. Carbon trading refers to a system to control emissions of carbon dioxide whereby governments set an overall limit on the amount that can be emitted, and companies trade for the right to emit the greenhouse gas.

    The 635 enterprises include power plants and companies in the manufacturing sector. Their total carbon emissions in 2013 decreased by 3.83 million tons, or 11.7 percent, compared with 2010. Eight power plants alone reduced emissions by 3.06 million tons.

    Participating enterprises will get allowances of carbon emissions based on their previous emissions rates and added economic values. Enterprises that emit less than their allowances can trade the remainder in the marketplace. If an enterprise’s emissions exceed its allowance, it must purchase credits.

    Shenzhen started carbon trading on June 18 last year, making it the first of seven such pilot programs in China.

    (Han Ximin)