BP has signed a buy-back deal with a Shenzhen-based energy producer for 4 million CO2 allowances in what is the biggest deal to emerge in China’s carbon market so far, as some traders look for ways to bank in on the uncertainty surrounding the transition to a national emissions trading scheme.
The UK-headquartered oil major signed the contract with Shenzhen Energy Group at a conference on Saturday, according to an announcement by the China Emissions Exchange, which hosts trading in the city’s pilot ETS.
BP bought the Shenzhen Emissions Allowances (SZEAs) and will sell them back at a fixed price ahead of the June annual compliance deadline.
Read the full story here: Carbon Pulse