China sets up first environmental exchange

Currently Chinese sellers sell carbon emission quota at between eight and
10 euros (12 to 15 dollars) per tonne, compared to the international level of around
17 euros per tonneChina has launched its first environmental exchange in Beijing,
aiming to eventually provide a platform for emission quota trading.

The Beijing Environmental Exchange will be a trading platform for environmental protection technology as well as sulfur dioxide and chemical oxygen demand emission permits, the China Beijing Equity Exchange said in a statement on its website.

"The Beijing Environment Exchange will fully play its role as a market platform bringing together domestic and foreign companies, agencies, banks and investment banks," Xiong Yan, chairman of the exchange, said in the statement.

The exchange will report directly to government departments including the environmental protection ministry and the National Development and Reform Commission, China's top economic planning agency.

It is the first environmental equity trading institution in China and will initially focus on environmental technology business, with an aim to finally incorporating carbon emission trading, said Tuesday's Beijing Evening News.

It is also expected to help lift domestic carbon emission quota prices to the international level by providing access to trading information for local sellers, according to the report.

Currently Chinese sellers sell carbon emission quota at between eight and 10 euros (12 to 15 dollars) per tonne, compared to the international level of around 17 euros per tonne, it said.