China, the world’s largest carbon emitter, was set on Tuesday to launch its first carbon trading scheme aimed at reducing emissions, state media said.
A platform allowing businesses in the southern city of Shenzhen to trade permits to emit carbon was established on Sunday, with trading due to start on Tuesday, China’s official Xinhua news agency reported.
China plans to open similar schemes in seven areas before next year, in what analysts say is a step towards a nationwide carbon market.
“This is the first step towards a national carbon trading system,” Li Yan, head of environmental group Greenpeace’s climate and energy campaign in China, told AFP.
But analysts have said that the scheme, which covers just 38 per cent of the city’s emissions, is unlikely to produce significant reductions in overall emissions.
“It only covers less than half of the city’s emissions, so the effectiveness in terms of carbon cuts needs to be seen,” Li said.