China starts world’s biggest carbon emissions trading market

China’s national carbon emissions trading market was launched on July 16.

China starts world's biggest carbon emissions trading market

China’s national carbon emissions trading market was launched on July 16.

The power generation industry became the first industry to be included in the national carbon market, with more than 2,000 critical emission units included in the industry.

The carbon emissions of enterprises included in the first batch cover more than 4 billion tons of carbon dioxide, according to calculations by China’s Ministry of Ecology and Environment.

China’s carbon market will become the world’s largest covering greenhouse gas emissions, which will become an essential step in global climate action.

The construction of China’s carbon market started from local pilot projects, which have been carried out in Beijing, Tianjin, Shanghai, Chongqing, Hubei, Guangdong, and Shenzhen.

By June 2021, the cumulative trading volume of carbon market allowances in these pilot provinces and cities is 480 million tons of carbon dioxide equivalent, with a turnover of approximately 11.4 billion yuan.

The Shanghai Stock Exchange also announced that the national carbon emissions trading institution is responsible for organizing the centralized and unified trading of carbon emission rights, according to the relevant regulations of the Ministry of Ecology and Environment.

Before establishing the trading market, Shanghai Environment and Energy Exchange Co., Ltd. was responsible for the account opening and operation and maintaining the national trading system.

It is expected the trading market will include more industries. The steel industry will be included in the carbon emission trading market as early as possible during the “14th Five-Year Plan” period.

In addition, key emission industries such as petrochemicals, chemicals, building materials, nonferrous metals, papermaking, electric power, and aviation are also expected to be included during the period.

According to statistics, after key industries are included in the carbon market, the total annual carbon emissions covered is around 8 billion tons, accounting for about 70%-80% of the national carbon emissions.

Industry insiders predict that the trading volume of China’s carbon trading market may reach 250 million tons in 2021, three times the total trading volume of the pilot exchanges in 2020, and the turnover will reach 6 billion yuan.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2021/07/18/china-starts-worlds-biggest-carbon-emissions-trading-market/.

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