China considers pollution tax

Chinese authorities are considering introducing a pollution tax aimed at heavy industry, according to reports.

Speaking to the China Daily Post, deputy minister of environmental protection Pan Yue revealed that the Chinese government is planning to produce a research paper on environmental taxation and is seeking experts to contribute to the report.

No information was given on the scale of the tax and when it might be brought in. However, according to the Post, Yue said that the government was looking into the idea of a trade model for emissions.

If the reports prove correct, the development of a tax on polluters would add to several other punitive financial measure already taken by Chinese authorities, including cutting tax rebates on energy intensive products and targeting emissions from large vehicles.

Last month, UK carbon exchange specialist Climate Exchange confirmed that it signed an agreement with the Chinese authorities to start an emissions trading scheme in the country.

The deal will see the organisation's US subsidiary the Chicago Climate Exchange work with the Chinese National Petroleum Corporation Assets Management Co and the City of Tianjin to develop what could be the country's first carbon trading scheme.