China: half of the compliance companies in Shenzhen have gaps, officials say

06 June 2014 11:19 Source:ICIS

Half of the 635 liable entities in the Shenzhen emission trading system (ETS) have gaps to cover before the compliance deadline 30 June, a local official told ICIS reporter on Thursday.

The official reached the conclusion from the verification results of the 21 local agencies.

“It’s a sound scenario. The local ETS makes sense when those have guts and gaps are half-half,” said the same official.

The daily allowance price in the Shenzhen scheme averaged at Chinese yuan 77/tonne (€9/tonne) since January.

Initially, the sellers didn’t want to sell less than Chinese yuan80/tonne (€9.4/tonne), whereas the buyers didn’t want to buy more than Chinese yuan40/tonne (€4.7/tonne). Now they reach to the balance point at Chinese yuan70-80/tonne (€8-9/tonne), according to the second local official.

The Shenzhen ETS will hold the first auction on Friday, which only permits the compliance companies with gaps to join. Participants swarm to consult how to bid and buy on Thursday, according to the first official. Ling Ma

By Ling Ma