China issues long-awaited 1st draft of rules for carbon emissions trading
Reuters | Apr 4, 2019, 10:56 IST
Representational photo. BEIJING: China has issued the first set of draft rules for its long-awaited national carbon emissions trading scheme (ETS) since it trumpeted the launch of the platform more than a year ago.
The release of the document, now open for public consultation until May 2, by the Ministry of Ecology and Environment late on Wednesday brings China, the world's biggest greenhouse gas emitter, closer to actual emissions trading that could help it meet commitments to tackle climate change.
The ministry said both institutional and individual investors will be allowed to trade. Quotas for trading on the platform will be set and allocated by the State Council, China's cabinet, based on factors including economic growth and the country's "energy structure".
Although China has repeatedly said it is working on the legal and technical infrastructure for the scheme, the draft is the first official document outlining ETS trading parameters to be released since the launch was announced in December 2017. According to the draft, each unit in trading quotas will represent one tonne of carbon dioxide equivalent.
A senior climate official said last Saturday China expects to see the first transaction on the ETS in 2020.
China plans to include all its coal-fired power plants, accounting for around 3 billion tonnes of greenhouse gas emissions, in the ETS from the first stage of trade, making it the world's biggest market for carbon emissions.
China has also been gathering data from its sprawling steel industry, which is one of the sectors that will be involved in the second stage of the scheme.
The release of the document, now open for public consultation until May 2, by the Ministry of Ecology and Environment late on Wednesday brings China, the world's biggest greenhouse gas emitter, closer to actual emissions trading that could help it meet commitments to tackle climate change.
The ministry said both institutional and individual investors will be allowed to trade. Quotas for trading on the platform will be set and allocated by the State Council, China's cabinet, based on factors including economic growth and the country's "energy structure".
Although China has repeatedly said it is working on the legal and technical infrastructure for the scheme, the draft is the first official document outlining ETS trading parameters to be released since the launch was announced in December 2017. According to the draft, each unit in trading quotas will represent one tonne of carbon dioxide equivalent.
A senior climate official said last Saturday China expects to see the first transaction on the ETS in 2020.
China plans to include all its coal-fired power plants, accounting for around 3 billion tonnes of greenhouse gas emissions, in the ETS from the first stage of trade, making it the world's biggest market for carbon emissions.
China has also been gathering data from its sprawling steel industry, which is one of the sectors that will be involved in the second stage of the scheme.
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