China admits it still has work to do before carbon trading scheme gets up and running
- Environment ministry official says nationwide scheme will need to be phased in gradually to ensure proper infrastructure is in place
China still needs to do a lot of work before it can fully launch its long-awaited nationwide carbon emissions trading scheme and will gradually phase in the system, which is running behind schedule, a senior government official said on Monday.
China began launching pilot regional trading platforms in 2013 in line with its efforts to curb surging greenhouse gas emissions, forcing firms in industries such as power, steel and cement to cut emissions or buy carbon permits to cover their annual allocations.
The country had aimed to replace the regional pilots with a nationwide emissions trading scheme (ETS) by 2017, but it still needs to ensure it has the required legal and technological infrastructure in place, Li Gao, head of the climate change office at Ministry of Ecology and Environment, said.
“As far as work arrangements are concerned, we must promote the construction of the carbon market in a phased and step-by-step manner,” Li said, noting that China would also do its utmost to limit risks by preventing “speculation” and the “excessive financialisation” of carbon trading.
Accumulated trade volume from China’s seven pilot regional carbon trading schemes reached 6 billion yuan (US$863.9 million) by the end of October, up from 4.7 billion yuan at the end of last year, the ministry said.