Beijing Environmental Exchange
|Beijing Environmental Exchange|
|Key People||Xiong Yan, Chairman|
China has launched an environmental exchange in Beijing, marking the first stage in its efforts to create a nationwide emissions trading platform. The China Beijing Environmental Exchange will allow trade in environmental technology as well as sulfur dioxide and chemical oxygen demand permits. Other regions, including the heavily polluted Lake Tai region in east China's Jiangsu province, have already established pilot emission trading schemes. 
"The Beijing Environment Exchange will fully play its role as a market platform bringing together domestic and foreign companies, agencies, banks and investment banks," Xiong Yan, chairman of the exchange, said in the statement. The exchange will report directly to government departments including the environmental protection ministry and the National Development and Reform Commission, China's top economic planning agency. 
The establishment of the market is expected to further open up the lucrative Chinese carbon credit market. Under the Kyoto protocols clean development mechanism carbon credits are issued by the UN to investors in projects in developing countries that reduce greenhouse gas emissions. The going rate for a credit in the international markets is in the $15-$18 range. According to the World Bank, during the first nine months of 2006, $3 billion (2.3 billion Euro) in carbon credits from developing countries were traded. Many of the credits issued in China so far have come from the installation of equipment to curb emissions of HFC-23, a much more potent greenhouse gas than carbon dioxide, generating large profits for a small outlay.