TPAIC 1st local firm to buy carbon credits

Tianping Auto Insurance Co (TPAIC), a Shanghai-based insurance company, yesterday purchased 8,026 tons of carbon credits generated from a public green commuting campaign carried out during last year's Beijing Olympics, sealing the first such domestic deal in China's burgeoning voluntary carbon trading market.

The carbon credits, put on auction at the China Beijing Environment Exchange (CBEX) since December last year, were purchased at around $5 per ton, and the total spending amounted to around 277,600 yuan, according to Hu Wu, chairman of TPAIC.

"This will help TPAIC to offset all its carbon emissions from daily operations between 2004 and 2008, making us the first carbon-neutral company in China," Hu said.