China's power quota to boost power sector, cut emissions

Beijing launched its first quota trading platform for electrical power saved during production.

The trading marks the first time that energy-hungry companies have been allowed to purchase power quotas from more efficient enterprises in order to stay below their power consumption cap.

This is meant to boost the energy service sector and let the market play a bigger role in fighting climate change.

Quotas equivalent to 216.6 tonnes of standard coal have been traded, with the combined transaction volume reaching US$20,680 U.S. dollars on the Beijing Environment Exchange.

The transactions were not handled by power users directly, but by their energy service providers, or companies that have introduced energy solutions in exchange for power quotas saved through their energy-saving technology.

China has adopted multiple market-oriented methods to encourage energy saving and cut emissions, including a pilot carbon market program that has been approved in seven regions, including Beijing and Shanghai.

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