China is to launch the country’s first national carbon trading market late this year, creating the largest of its kind in the world, according to
21st Century Business Herald.
Preparations were begun in 2016 by the National Development and Reform Commission (NDRC) alongside other departments, with efforts devoted to legislation, quota arrangement and accounting, the Business Herald reported.
The newspaper quoted a report by the International Carbon Action Partnership (ICAP) as showing that by the end of 2017, 19 carbon-trading systems will be running worldwide. They are expected to cover 7 billion tons of greenhouse gas emissions, accounting for 15 percent of the world’s total carbon emissions.
Since around 2012, China has had seven pilot carbon markets running at regional levels in Tianjin, Shanghai, Guangdong, Shenzhen, Hubei and Chongqing. By the end of 2016, according to the Herald, these markets had achieved a cumulative volume of 160 million tons, reporting a total turnover of 2.5 billion yuan ($364.2million).
But progress has been slower than expected, the newspaper said, with several provinces still stuck in the preliminary phase of determining the historical emissions of targeted companies.
The newspaper meanwhile quoted industry insiders as saying that market situations are now different from 2012 when pilot markets were initiated, indicating expectations should be lowered.
Several years ago, the carbon-trading market urgently needed to cool down the rapid growth of carbon emissions. Against an equally rapidly-growing economy, companies then were able to afford extra emissions, the newspaper said. But now as economic growth slows, companies may find their energy and production costs become burdened by the market mechanism, it said.
Authorities have therefore maintained a conservative attitude, the newspaper reported, quoting a NDRC official as saying that the upcoming national carbon market should avoid haste and high expectations.