Cities in China and Mexico launch carbon credit schemes

Beijing, Shanghai and Mexico City have all launched carbon credit schemes in an effort to move companies towards less polluting activities and advance clean technologies.

Over 190 companies in Shanghai from various sectors, including steel, iron and aviation, have contributed to the initiative. Additionally, a pilot scheme is set to launch in Beijing next month, with 435 companies taking part.

The pilot project will asses the usefulness of carbon credits in reducing emissions and allows companies that emit more carbon than what they should to buy carbon credits – for up to 9,500 tonnes of carbon – from those that pollute less.

If the pilot project is successful, China may launch a national carbon trading scheme to mitigate climate change.

China has a massive problem with air pollution in its cities, mainly due to the fact that the country relies heavily on fossil fuels.  In order to improve urban air quality, the Chinese government has considered a series of measures such as reduction in the speed of coal production and embracing foreign investment in green projects.

A carbon trading scheme has also been launched in Mexico City. It was presented on the stock exchange by the Bolsa Mexicana de Valores (BMV) and was named MEXICO2.

Carbon trading was first launched after the Kyoto Protocol as a way of reducing greenhouse gas emissions. It was recently criticised in the UK recently after elderly investors were tricked into buying carbon credits as investments. Interpol stated that the criminal activity surrounding the carbon trading market is due to a lack of clarity, and that this needs to be addressed.