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The Greenest Yuan
(Photo via fueleconomy.gov)
According to Reuters, via the International Herald Tribune:
Green credit: To fight pollution, China takes the capitalist route
July 30, 2007
BEIJING: The Chinese environmental agency is working with the banking authorities to identify companies that fail pollution checks or bypass environmental assessments for new projects and to restrict their access to fresh credit.
In essence, the country’s worst polluters will be blacklisted from borrowing money from banks. And, according to the article, “officials will also consider incorporating environmental standards in tax, insurance and stock market regulations.” In a country where there is no shortage of corner-cutting money grubbers, this might actually work!
Greening the world through capitalism is nothing new, but it’s definitely becoming more of the norm, rather than the exception.
In Crain’s Chicago Business (where I intern in the research department), there’s a front-page story about Richard Sandor and the Chicago Climate Exchange. The story is available to subscribers only, but you can read more about the organization on its Web site.
Chicago Climate Exchange (CCX) is the world’s first and North America’s only legally binding rules-based greenhouse gas emissions allowance trading system, as well as the world’s only global system for emissions trading based on all six greenhouse gases.
CCX emitting Members make a voluntary but legally binding commitment to meet annual greenhouse gas (GHG) emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX Carbon Financial Instrument™ (CFI™) contracts.
The CCX was modeled after the European Climate Exchange.
China has also established a “green credit” exchange.
China Aims to Shed Its Dirty Dragon Image
BusinessWeek
By Brian Bremner
February 14, 2007
China gets its share of international criticism for its world-class air pollution, toxic river systems, and colossal energy inefficiency. And much to the chagrin of Beijing, its dirty dragon image seems likely to expand later in the decade when it is forecast to overtake the U.S. as the world’s biggest emitter of greenhouse gases.
However, China’s decision on Feb. 6 to team up with the United Nations Development Program (UNDP) and launch the developing world’s first carbon-credit exchange could alter that scenario. It’s a diplomatically artful move by Beijing that will increase incoming foreign investment in green technology on the mainland—and could be a game-changer for the $22 billion global trading market for carbon credits down the road.
I say, if businesses are the ones running the game, they should definitely be responsible for setting the rules. We’ll see how China does on the playing field.
Related links:
Financial Times
By Mure Dickie and Fiona Harvey
February 5, 2007
China and the United Nations are working to set up a carbon trading exchange in Beijing – a move that could establish the Chinese capital as an important centre for the multibillion-dollar global trade in carbon credits, according to the UN’s top official in China.
Asia Times Online
By Antoaneta Bezlova
July 11, 2007
BEIJING - After a series of failed administrative campaigns to enforce pollution controls, China is hoping to use financial means to restrain its big polluters.
[tags]China, green credit, banking, Chicago Climate Exchange, European Climate Exchange[/tags]
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