China's Hubei plans world's third-biggest emissions market
BEIJING (REUTERS) - China's Hubei province will issue 300 million carbon permits a year under its emissions trading scheme, local media reported on Thursday, meaning the fast-growing economic hub will host the world's third-biggest CO2 market when it launches this year.
The province, home to 57 million people, will be the sixth Chinese region to launch a carbon market as Beijing attempts to slow its rapidly growing greenhouse gas emissions, blamed by scientists for causing climate change.
China aims to cut its emissions per unit of GDP to 40 to 45 per cent below 2005 levels by 2020 and has said it wants to use market mechanisms to meet the target.
To succeed, it is considered essential to slow emissions growth in industrial centre's such as Hubei. The province's economy grew by 11.3 per cent in 2012 to US$357 billion (S$451 billion), roughly the size of Thailand's GDP.