Date
24 August 2017
Microsoft's China unit is facing a hefty fine, along with four other companies, under Beijing's carbon trading scheme. Photo: Bloomberg
Microsoft's China unit is facing a hefty fine, along with four other companies, under Beijing's carbon trading scheme. Photo: Bloomberg

Microsoft faces Beijing fine for busting carbon quota

Beijing will fine Microsoft’s China unit and four other companies for exceeding their carbon emission quotas, the first such move by the city government since it launched a carbon trading scheme last year, National Business Daily reported Friday.

Microsoft, Beijing CB Richard Ellis Property Consultants and Beijing President Drink and Food Co. Ltd. will be fined three to five times the prevailing carbon quota trading prices, the report said. The other two companies were not named. 

Beijing CBRE could face a fine of 3.33 million yuan for 10,000 tons of excess quota, based on the average transaction price of 66.77 yuan (US$10.86) per ton.

In November, Beijing launched a carbon trading scheme in which companies that exceed their emission quotas are allowed to buy unused credits from those that pollute less.

The National Development and Reform Commission has approved a similar scheme for Tianjin, Chongqing, Hubei and Guangdong.

China has pledged to reduce carbon emission by 40 to 45 percent per unit of gross domestic product by 2020 from 2005 levels.

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