Hopes that the US and Australia could soon adopt carbon cap-and-trade schemes appear to be fading by the day, but that has not stopped other markets across Asia piloting emissions trading initiatives in recent weeks.
According to Reuters reports, the northern Chinese city of Tianjin this week became the latest to trial a form of emissions trading, launching a small-scale energy intensity trading scheme on Tuesday with three pilot sales.
Citigroup Global Markets and Gazprom Marketing and Trading purchased the first batch of "Carbon Emission Allowances" under the scheme, which were issued by three heating suppliers projects that had undertaken energy efficiency projects that had cut emissions equivalent to that from around 4,500 tonnes of coal.
The credits were awarded to the heating suppliers based on their emission reduction performance over and above the cuts they are expected to deliver in line with the Chinese government's voluntary target to reducing emissions per unit of GDP 45 per cent below 2005 levels by 2020.
The scheme, run by the Tianjin Carbon Exchange, will initially only cover heat supply firms and hospitals, but if successful is likely to be expanded to cover other organisations.
The new project follows the launch of similar city-wide pilot schemes in Beijing and Shanghai, but the Tianjin scheme is the first to successfully sell emission credits to foreign firms.
In related news, officials in Tokyo have also reportedly confirmed that the city will introduce a mandatory cap-and-trade scheme covering 1,400 large factories and offices in April.
The scheme has been in the pipeline for over a year, and Environment Minister Sakihito Ozawa said in a recent interview he hopes that the initiative would help accelerate government plans for a nation-wide emissions trading scheme similar to that in the EU.
The Indian government also announced last month that it was planning to develop a market for energy efficiency credits, which officials predicted could be worth $16bn in five years.
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