After conducting pilot projects at the local level for
slotxo more than a decade, China officially launched its long-awaited national carbon emissions trading market on Friday.According to the Chinese Ministry of Ecology and Environment (MEE), China's Emissions Trading System (ETS) has replaced the EU's as the world's largest emissions trading system. broadcast to the world.Here's everything you need to know about the Chinese carbon market.
What is a carbon market?A carbon market is where greenhouse gas emitters can buy and sell greenhouse gas emission permits or quotas.The government sets a cap on the total amount of carbon emissions for the year, and then companies either receive or buy emission allowances within the cap.
A company must provide enough allowances to cover all of its annual emissions or face a fine. They can trade carbon emission allowances with each other on the trading platform.In the Chinese ETS, the majority of allowances are allocated free of charge to issuers; however, in most other carbon markets they are purchased.
Additionally, the Chinese version targets intensity rather than cap emissions.In the EU and US versions, an overall cap is set on the number of carbon credits. It is the amount of carbon that the signatories of the agreement are happy to emit over a given period. The Chinese program will establish benchmarks for each separate power plant, which will vary from facility to facility.
