(Yicai Global) March 25 -- Tianjin Lvyin Landscape and Ecology Construction’s stock price hit the exchange-imposed daily limit today after the Chinese environmental governance firm agreed to team up with the Tianjin Climate Exchange to plumb the potential of the country’s incipient carbon emissions trading market.

Lvyin’s stock price [SHE:002887] surged 10 percent to close at CNY15.07 (USD2.31).

The pair would focus on the monetization of forestry carbon sinks, which refer to the absorption of greenhouse gases through newly planted forests and other vegetation, Tianjin Lvyin said today.

Tianjin Climate Exchange, China’s first exchange for the trading of environmental financial instruments, will provide the best forestry carbon sink asset development and trading mechanisms for Lvyin’s ecological afforestation projects and programs nationwide, it said.

They will also formulate technical routes and detailed plans for new projects so as to accelerate the transformation of Tianjin Lvyin’s reforestation work into valuable carbon assets, it said.

China’s emissions trading scheme was launched last month encompassing only the power sector and for now includes around 2,000 electricity generation plants. The new focus has boosted the value of many power suppliers. Guodian Changyuan Electric Power [SHE:000966], for instance, has seen its share price more than double since the beginning of the month.

More industries are being lined up, which would first be traded on pilot markets, the Securities Times reported earlier. China will gradually include the petrochemical, building materials, iron and steel, non-ferrous metals, papermaking and aviation industries into its carbon trading market, it said.

Tianjin Lyjin and Tianjin Climate Exchange will set up regional or national green industry alliances, organize conferences and innovate carbon sink trading methods in order to increase their standing in the field, the firm added.

Editor: Kim Taylor