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| China to launch pollution-quota system to reduce acid rain |
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BEIJING - China will begin a trial system of buying and selling pollution 'credits' in an effort to curb acid rain. The official Xinhua news agency said yesterday that the State Environmental Protection Administration would begin experimenting with the system in seven heavily industrialised regions, including Shanghai. Industries would be given quotas on how much sulphur dioxide they can emit, Xinhua said. Those exceeding the quotas must purchase pollution credits from other industries that do not use up theirs. Xinhua did not say if individual companies would be able to buy and sell credits, or what sort of market for credits would be established. Sulphur dioxide creates acid rain, which has become a major environmental problem in China because of its heavy reliance on coal-burning electric power plants. China's acid rain has also raised complaints in countries downwind, including Japan and South Korea. Only 5 per cent of coal-powered plants run by the country's largest power producer, the State Power Corp, have equipment for reducing sulphur emissions, according to state media. China has promised to cut sulphur emissions by 10 per cent by 2005. Acid rain was a problem in about 59 per cent of the 274 cities studied. --AP, AFP
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