China unveils carbon trading plan.(ASIAN/PACIFIC)

The Chinese government and the United Nations (UN) say they are planning to establish a carbon trading exchange in Beijing. The exchange would be a platform for trading in carbon dioxide (C[O.sub.2]) credits, and would be the first of its kind in the developing world. It would compete with exchanges in Europe and the U.S. The Beijing project would cost an estimated $1.7 million over three years, the UN says.

Carbon credits confer the right to emit C[O.sub.2]. Credits are issued by the UN under the-Kyoto Protocol's Clean Development Mechanism (CDM). Companies in developed countries that have signed up to the Kyoto agreement may invest in projects to reduce greenhouse …