Foreign investors to trade carbon permits in Shenzhen

China, one of the world's biggest greenhouse gas emitters, said it will allow foreigners to trade carbon permits in Shenzhen, making it the nation's first emissions exchange to welcome outside investors.

The Shenzhen exchange has yet to set the date or finalize other entry procedures for foreign investors. The State Administration of Foreign Exchange has allowed foreign participation in principle, according to a statement on Friday on the website of the China Emissions Exchange.

The southern city of Shenzhen started carbon trading last year as the first of seven pilot programs in China. The exchanges, constituting the world's biggest emissions trading system after Europe, may be a precursor to a nationwide system.