Polluters who have reduced their carbon emissions can now apply for a reduction to their electricity bill, thanks to a new system rolled out by the carbon trade center in Beijing.
Electric Carbon Contract, a cooperation project between Beijing Environment Exchange and GP Power Electricity Group, was launched on Tuesday in Beijing.
The system links carbon trading with preferential electricity rates, said Mei Dewen, director of Beijing Environment Exchange.
Since 2013, China has tested carbon trading in seven pilot cities, including Beijing. Local governments assign tradable carbon emission allowances to key emitters based on their emissions history.
Key emitters that have unused allowance receive a 100-yuan (14.5 U.S. dollars) cut on every 1,000 kwh of electricity they use.
The same favorable rate is given to emitters who have participated in the Chinese Certified Emission Reduction program and reduced their carbon emissions.
As of September, China's pilot program has seen the trade of over 120 million tonnes of carbon dioxide with a total transaction volume of 3.2 billion yuan, according to the State Council, China's cabinet. The State Council issued a plan earlier this month to roll out the practice nationwide in 2017.