SHANGHAI: China’s carbon trading market, which was launched in July 2021, has registered increases in both trade volume and price, says Ecology and Environment Vice-Minister Zhao Yingmin.
As of the end of last year, the programme saw over 440 million tonnes of carbon emission allowances change hands for almost 24.9 billion yuan, he told a news conference organised by the State Council Information Office on Monday.
He said the trade volume in the second compliance period jumped by 19% from the first, and turnover increased by 89%.
“Overall, the price of carbon emission allowances is showing a stable upward trend,” the Vice-Minister said.
The price climbed to 80 yuan per tonne, compared with 48 yuan per tonne when the market was launched, he added.
Carbon trading is the process of buying and selling permits to emit greenhouse gases among designated emitters.
The programme 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.
At the beginning, China’s carbon trading market included 2,162 power-generating enterprises across the country, covering about 4.5 billion tonnes of carbon dioxide emissions – the most covered in the world.
According to Zhao, the number of power-generating enterprises in the market has increased to 2,257, and the emissions it covers have reached roughly 5.1 billion tonnes. — China Daily/ANN
