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China finally issues draft rules for carbon emissions trading scheme

  • Document comes after launch of ETS platform was announced in December 2017
  • Rules will be open for public consultation until May 2

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China’s environment ministry said both institutional and individual investors will be allowed to trade on the ETS platform. Photo: Simon Song
Reuters

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, which will be 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”.

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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 1 tonne of carbon dioxide equivalent.
According to the draft, each unit in trading quotas will represent 1 tonne of carbon dioxide equivalent. Photo: Reuters
According to the draft, each unit in trading quotas will represent 1 tonne of carbon dioxide equivalent. Photo: Reuters
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A senior climate official said on Saturday that China expected to see the first transaction on the ETS next year.

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