Published 15:18 IST, May 26th 2021

China to launch nationwide carbon trading market by June, starting with 2,225 companies

China’s Ministry of Ecology and Environment on May 26 announced the country’s plan to launch a nationwide carbon trading market by June.

Reported by: Bhavya Sukheja
Follow: Google News Icon
  • share
IMAGE: TWITTER/AP | Image: self
Advertisement

China’s Ministry of Ecology and Environment on May 26 announced country’s plan to launch a nationwide carbon tring market by June. According to Global Times, spokesperson of ministry, Liu Youbin said that officials are working on preparatory work before launch of national carbon tring market. He informed that relevant departments have been organized and trials of simulated tring test with real capital have been completed. 

China’s recent plans show strengning efforts to reach country’s ambitious goal of net-zero emissions by 2060. Youbin said that discharge covered by nationwide tring market will hit more than four billion tons, which is world’s largest coverage of greenhouse gas emissions. It is worth mentioning that back in March it was reported that Shanghai United Assets and Equity Exchange and Shanghai Environment and Energy Exchange will oversee unified national tring system, which is expected to include spot tring and futures in its transactions. 

Advertisement

Nikkei Asia h reported that a set of 2,225 companies will be first group to participate in national carbon tring scheme. ditionally, authorities also have plans to include seven or segments by 2025, including steel, construction materials, and petrochemicals. Like or markets, a carbon market involves a transaction between a seller and a buyer. seller sells a carbon credit to a buyer who can use carbon credit to run cleaner operations, creating an incentive to cut carbon emissions.

China’s pilot markets 

As per Global Times report, China has alrey tested carbon credit tring at a local level for years. Li Gao, director-general of Department of Climate Change at Ministry of Ecology and Environment h informed that since 2011, such pilot markets have been set up in seven provinces and cities. Pilots programs have covered more than 20 industries. 

Advertisement

Nearly 3,000 major companies cover about 440 million tons of carbon discharge, creating a turnover of $1.64 billion. Lai Xiaoming, chairman of Shanghai Environment and Energy Exchange said that major goal of carbon market is to serve companies to reduce carbon emissions so that companies are able to reduce emissions at a lower cost with a market-oriented mechanism. 

(Image: Twitter/AP)
 

15:18 IST, May 26th 2021