Central China's Hubei Province Wednesday launched a carbon trading scheme, the country's sixth.
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The scheme covers 138 companies in 12 high pollution industries, including power generation and steel, which have been given a combined carbon emission quota of 324 million tonnes this year, the Hubei carbon trade exchange said in a statement.
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Under the trading program, those which emit below their quotas can sell their excess to other enterprises or even to investors for profits.Â
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Hebei is the first place where the government has sold reserve quotas. About 2 million tonnes of carbon have been sold at a price of 20 CNYÂ (3.20 USD) per tonne.
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The exchange also signed carbon trading agreements with other provinces including Shanxi, Anhui, Jiangxi and Guangdong.
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The scheme is a big step for China in building a nationwide carbon trading market, with an expectation of 40 to 45 percent reductions of 2005's emissions slated for 2020.Â