BEIJING: China has seen over 194 million metric tons of carbon emission allowances change hands for almost 8.5 billion yuan ($1.3 billion) since the launch of its carbon trading market a year ago, according to authorities.
The program has played a significant role in enhancing low-carbon development awareness among major emitters, as the country forges ahead with its ambitious climate targets, experts said.
Although it only covers the power generation sector now, the initiative of putting a price on carbon emissions has boosted the development of carbon-related services in industries beyond, paving the way for the market’s expansion, they said.
Carbon trading is the process of buying and selling permits to emit greenhouse gases among designated emitters.
It began on July 16 last year, and now includes nationally 2,162 power-generating enterprises, covering about 4.5 billion tons of carbon dioxide emissions. That’s already the world’s largest amount of greenhouse gas emissions covered.
The program imposes carbon emission limits for every unit of electricity a power plant generates. After each cycle of trading, operators can sell any carbon allowances they have left over after complying with the benchmark. If they fall short, they will have to buy allowances.
Over the past year, the carbon market has generally run smoothly, with a slight increase in trading prices, Zhao Yingmin, vice-minister of ecology and environment, said in Shanghai on Saturday at the China International Carbon Trading Conference.
–The Daily Mail-China Daily news exchange item
