Guangdong producers buy CO2 permits

Four cement producers in China's Guangdong province have bought 1.3 million CO2 permits from the local government at CNY60/unit (EUR7.25), according to local press.

China Resources Cement, Sinoma, Taipai and Yangchun Hailuo bought the permits in a bid to hedge their carbon exposure as they plan to expand cement production capacity by 25Mta over the next few years, newspaper 21st Century Business Herald reported on Tuesday.

Under the Guangdong Emissions Trading Scheme (ETS), the biggest of seven emerging CO2 markets in China, companies that raise their production capacity or build new facilities will have to pay for 10 per cent of their expected carbon emissions, an unnamed source told the paper.

Guangdong has capped its CO2 emissions in 2015 at 660Mt, a 30 per cent increase from 2010 levels.