Market practices via 2 environment bourses

BEIJING, Aug. 6 --Two environment exchanges were

launched yesterday in China as the nation moves towards more market-oriented

practices in cutting emission and energy conservation.

In Shanghai, an environment and energy exchange was

opened in Hongkou District which will collect and publicize information relating

to the trading of emission rights.

It will create a platform for stake holders in the

sector such as buyers, sellers, research houses, investment institutions and

certification agencies.

The bourse will also provide services such as

consultancy, project evaluation, fund management, and guidance in investment and

financing.

On Beijing's Financial Street, a similar exchange was

set up which will allow trading of environmental-protection technologies and

emission rights of sulfur dioxide, among others.

With environment problems increasingly threatening

global development, China has placed the environment on top of its agenda

alongside economic and social development.

It aims to cut its energy intensity by 20 percent and

major pollutants by 10 percent in the five years through 2010.

However, the lack of information and expertise of

Chinese enterprises in environmental protection have undervalued the huge market

so that such open platforms are in need greatly and urgently, the Beijing

environment exchange said.

But an executive at the Shanghai exchange said

domestic bourses won't launch carbon trading yet as state approval has to be

sought.

The United Nations has a Clean Development Mechanism

under which developers of registered projects that cut greenhouse gas in

developing nations can sell so-called carbon credits on special bourses to

polluters in industrialized nations or directly to a third party. These rich

nations are subject to mandatory emission-reduction goals under the Kyoto

Protocol.

(Source: Shanghai Daily)