China’s carbon neutral goal: online trading of emission allowances to start by June in road to 2060 targets

Name: Chinese cash funds African coal plants despite environmental concerns
Uploaded: 2021-03-01T08:02:46.000Z
Duration: 2 min 6 s
Description: Chinese cash funds African coal plants despite environmental concerns

Government to ensure the inauguration of online trading before the end of June, minister of ecology and environment Huang Runqiu says

China last month approved a futures exchange in Guangzhou, which will focus on climate-related derivative products

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Taxis and traffic in a Beijing main street. China is the world’s biggest emitter of carbon dioxide, generating more than the US and Europe combined. Photo: Getty Images

Daniel Renin ShanghaiandZhang Shidongin Shanghai

Published: 4:02pm, 1 Mar 2021Updated: 4:02pm, 1 Mar 2021

China is set to launch an online carbon emissions trading system this quarter, speeding up the nation’s efforts to curb pollution and help attain its carbon-neutrality goal by 2060.

A full-scale testing would be carried out soon to ensure a smooth opening of trading, Huang Runqiu, the Minister of Ecology and Environment, during a visit to central Hubei province, where the registration system and data for the exchange will be based. Shanghai, home to the bourse, will host trading on Friday and Saturday.

“Early implementation of the trading mechanism is desirable,” Huang said in a separate statement issued by the ministry. “We must ensure that the inauguration of online trade will take place before the end of June.”

Trading of emission allowances is Beijing’s latest attempt at using capital market tools to help put greenhouse emissions under control. China, the world’s second-largest economy, ranks as the top carbon dioxide emitter globally, surpassing the levels generated by the US and Europe combined.

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Chinese cash funds African coal plants despite environmental concerns

The trading system will initially include coal or gas-fired power plants, manufacturing facilities with captive power plants and major refineries owned by state-controlled oil giants such as Sinopec and PetroChina.

The government published rules governing carbon emissions trading in January, which took effect on February 1. The launch was plagued by delays due to concerns about accuracy and transparency of emission data.