China Beijing Environment Exchange Established

With environment problems increasingly threatening global development, China has placed the environment on top of its agenda alongside economic and social developments. As world's biggest developing county,China is committed to encounter these pending issues amid its efforts in developing a fast- growing economy and the construction of a harmonious society.China sees the environment a critical factor for sustainable development.

The General Work Plan for Energy Conservation and Pollutant Discharge Reduction, issued by the State Council, has pointed out that, by 2010,China's per ten-thousand GDP energy consumption should be reduced to less than 1 ton standard coal from 1.22 tons standard coal in 2005, a reduction of about 20%; water consumption per unit added value of industry should be reduced by 30%. By the end of the ''11th Five-Year Plan'', the total discharge of main pollutants should be reduced by 10%. To achieve these goals, both the government and market mechanism should play an essential role.

Efforts to control discharge of SO2 pollutant started in the US since the 1990s and discharge of the green house gas started inEurope since the beginning of the century prove that, under the premise of total discharge control, appropriate distribution, strict supervision and unrestricted flow, market mechanism is the best way to deal with environmental problems at a low cost. Attempts in US andEurope are examples of resolving the environmental problems by using market-based methods.

There is huge potential in the environment exchange market ofChina. However, the asymmetric information and lack of expertise in Chinese enterprises result in a serious undervaluation in environment exchange products. Therefore, an open platform for exchange is in urgent need. It should be used to explore the value of the environment exchange projects and promote marketization of Chinese environment exchange. The establishment of China Beijing Environment Exchange is set to fulfill this requirement.

Xiong Yan, chairman of China Beijing Environment Exchange explained that the exchange would work under the direction of the National Leading Group to Address Climate Change and Energy Conservation & Pollutant Discharge Reduction and under the direct leadership of the NDRC, Ministry of Environmental Protection ofthe People's Republic of China, and Beijing Municipal People's Government. The exchange would mainly engage in the exchange of technologies for environmental protection, energy conservation and pollution emission reduction, the exchange of index of amount of energy saving, the trade of SO2 and COD discharge rights and information service for green house gas emission reduction. It would give full play to its platform to integrate the efforts of the national and international enterprises, intermediary agents, banks and investment banks to improve the pricing power of Chinese enterprises in the carbon trading. The exchange would lay a foundation forChina to use market- based methods to solve the problems related to environmental protection, energy saving and pollutant emission reduction.

SOURCE China Beijing Environment Exchange

Copyright © 2009, PRNewswire
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Copyright © 2009, NewsBlaze, Daily News

Tags: ,ENV,FIN,OIL,UTI,ASI,PDT,Environment-Exchange

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