China about to launch national carbon trading super soon


China’s national carbon trading market will open “very soon,” with more than 2,000 power firms participating in the early stages, according to the country’s environment ministry (July 14). According to Zhao Yingmin, vice-minister of ecology and environment, these companies emit around four billion tonnes of carbon dioxide each year.
Mr. Zhao, appearing at a news conference, said China’s long-awaited carbon emissions pricing program would go live later this month, but when asked for a specific date, he refused to give one.
He stated, “I believe we can claim that it will formally debut very soon.”
According to several media reports quoting anonymous sources, the national carbon market might begin trading as early as Friday. China’s emissions trading program is a critical instrument for reducing its carbon footprint and meeting its emission objectives. President Xi Jinping has stated that China will reach carbon neutrality by 2060 and peak carbon emissions before 2030.
Analysts are watching China’s carbon market closely. According to the World Bank, it will cover more than 6 percent of global emissions and will be the world’s largest carbon market.
Such carbon markets work by incentivizing polluters to reduce emissions by allowing them to trade “permits” or “credits” that give them the right to emit.
The idea of establishing a carbon market in China was initially proposed ten years ago. So far, seven regional pilot markets have been established, but the formal debut has been continually postponed. Mr. Zhao explained that the power industry was chosen as the first to be rolled out because of the industry’s significant emissions and heavy coal use. Steel and petrochemicals, among other industries, will ultimately be included in the national market. When asked what price carbon would sell at, Mr. Zhao said it was too early to say, but that carbon had traded between 40 and 50 yuan per tonne in the seven pilot markets.


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