Jiangsu Dynamic Chemical and Wuxi Seamless Oil Pipe (WSP) have recently completed the pollution emission rights trading through a platform of Jiangsu Province.

WSP sold its surplus emissions rights for nitrogen oxides to Dynamic Chemical at a price of 12,240 yuan per ton, more than 5 times of the price set by the government, setting a new record in the coastal province.

In accordance with national and regional regulations, companies are assigned quotas for emissions and can sell surplus emission allowances to those that expect to exceed their pollution quotas, upon the approval by the ecological and environmental authorities.

The two companies published their supply and demand information on the platform and then reached the deal. In the procedure, they needed to have their qualification verified and agreement signed before getting a certificate issued by the Jiangsu Provincial Emission Rights Registration and Trading Management Centre.

The deal also showed the growing acceptance of the value of emission rights and represented a milestone of market-based allocation of environmental resources in the province.