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Beijing - China's campaign against pollution and greenhouse gases is hitting early resistance in the Guangdong province, where more than 60 manufacturers are holding back from a carbon market launched last year, saying the scheme is unfair and too costly.
The stand-off between a quarter of the intended participants in the emissions market and the provincial government underlines the difficulty in implementing green policies in China, even after the launch of a national "war against pollution".
Carbon
China, the world's biggest emitter of climate-changing gases, has in the past year set up pilot carbon markets in six cities and provinces. It plans to roll out a nationwide scheme by 2020 that would make it home to the world's top carbon market ahead of current leader, the European Union, where carbon trades last year were worth about $50bn.
But setbacks like the one now underway in Guangdong are likely to become more common as China turns from its "growth at all costs" model and seeks greater control over its dirtiest industries, with companies squeezed by a slowing economy pushing back against rising pollution and emissions costs.
An official at provincial government-owned iron and steel producer SGIS Songshan, which has not bought any carbon permits, said: "There's no reason for companies to pay millions of yuan a year (for carbon permits) when environment and energy regulators already charge us other pollution fees."
Emissions
The official said pollution costs were already weighing heavily on the company as it must also pay fees for sulphur dioxide emissions, waste water and solid waste, and adhere to strict efficiency standards.
Despite strong backing from Beijing, Guangdong has limited power to force SGIS or other hold-outs - mostly cement and steel makers - to participate in its carbon market.
It can slap them with a fine of about $8 000 per company and a possible reduction in the number of permits allocated to them next year.
