Hubei tops with 322m tons in carbon trading in first half of 2019

According to the China Hubei Emission Exchange on September 16, Hubei’s carbon trading market has performed prominently on reducing carbon emission. As of June 30, the transaction volume in the secondary market has reached 322 million tons, worth RMB 7.437 billion, accounting for 55.31% of the total volume and 62.18% of the total value across China.

According to the China Hubei Emission Exchange on September 16, Hubei’s carbon trading market has performed prominently on reducing carbon emission. As of June 30, the transaction volume in the secondary market has reached 322 million tons, worth RMB 7.437 billion, accounting for 55.31% of the total volume and 62.18% of the total value across China.

Since 2014, all emission-regulated enterprises in Hubei have participated in the trading and fulfilled their contracts. According to incomplete statistics, these enterprises have benefited around 350 million yuan from the carbon market. From 2014 to 2016, the annual emissions of these companies have decreased respectively by 7.67 million, 13.06 million and 6.18 million tons, which is a year-on-year decrease rate of 3.1%, 6.1%, and 2.59%. CO2 emissions per unit of GDP also decreased by 4.54% in 2017.

To provide more funding channels for enterprises that conserve energy and reduce emissions, Hubei launched a carbon financing innovation scheme. For example, China Hubei Emission Exchange has successively signed with six banks a credit-granting agreement worth 120 billion yuan to support the application of energy-saving technologies and the development of green and low-carbon projects, which is the biggest bank credit in carbon finance in China.

Also, Hubei has attracted five largest carbon funds totaling 120 million yuan into the market, not to mention initiating the first carbon asset custody business with a cumulative carbon asset of 4,020,000 tons and the first carbon pledge loan business which has raised 1.54 billion yuan.

What’s more, Hubei creates incomes for agriculture and forestry businesses by introducing social capital into project investment. In the past four years, Hubei’s voluntary emission trading for agriculture and forestry sectors in the poverty-stricken areas has accumulated a total of 713,000 tons, bringing more than seven million yuan for the regions.

Source: Ministry of Ecology and Environment of the People’s Republic of China

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/05/hubei-tops-with-322m-tons-in-carbon-trading-in-first-half-of-2019/.

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