China: Shenzhen ETS to introduce transportation and carbon assets custody

29 October 2014 | Kun Yang

Shenzhen emission trading scheme (ETS) has announced a series of innovations recently. Public transportation as well as the carbon assets custody mechanism will be brought into Shenzhen ETS, an official of Shenzhen Development and Reform Commission (DRC) said on Tuesday.

The preliminary mechanism of introducing the public transportation sector is completed while the specifics are not finalised yet, and the greenhouse gas (GHG) emission is being verified at the moment, the official added. The new mechanism is to encourage the application of new energy bus through carbon emission quota instead of the command-and-control way in the past. And the new mechanism is expected to reduce the GHG emission of Shenzhen’s public transportation at lower costs. 

Shenzhen Emission Exchange will hold an introduction session regarding the carbon asset custody service on Friday. There will be only 10 licenses for carbon asset custody agencies in the coming three years, ICIS learned from Shenzhen Emission Exchange on Wednesday. The ten licenses will be awarded to agencies with decent track record in carbon business through a selection process, which is to ensure the credibility of the carbon asset custody service experiment. 

The GHG emission of the public transportation department accounted for 27.7% of Shenzhen’s total GHG emissions in 2010. And the GHG emission of public transportation department in the year doubled compared to 2005, with an average annual increase of 14.4% in 2005-2010.

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