Bloomberg reports that China will create seven carbon-trading programs. The first — in Shenzhen — is underway, with Beijing, Shanghai, Guangdong, Tianjin Chongqing and Hubei to follow.
The exchange will adjust available credits in response to prices, throttling supply when demand is low and increasing it when demand rises.
By 2015, 800 million to 1 billion tons will be under regulation, an amount second only to the European Emissions Trading Scheme.
China has also backed away from even the 80¢/ton carbon tax that was slated for 2013 citing concerns about “obvious opposition.”