New | Shenzhen to hold first-ever auction of carbon permits
Speculators say minimum price was 'unfair' as it was 50pc less than average price of permits
Shenzhen will auction 200,000 carbon permits to help the city’s big emitters meet their targets under an emissions trading scheme.
But speculators who had bought permits in the market in the hope of selling them to emitters at a profit, said the minimum auction price was too low and could scupper their resale plans.
China, the world’s biggest emitter of climate-changing greenhouse gases, has launched six regional carbon markets as a low-cost approach to slowing the rapid growth in emissions.
The Shenzhen auction, the first such sale in the city, will come on June 6, with permits sold at a minimum price of 35.43 yuan (HK$44.47), according to a statement by the China Emissions Exchange, which runs the market.
“The auctioned permits can only be used for compliance, they cannot be traded in the market,” it said.
The fresh supply, taken from a reserve set aside by the city government last year, will help companies meet their carbon reduction targets under the scheme.
But speculators complained the minimum price was unfair as it was half the average price of permits since the market launched in June last year.