China’s sixth carbon trading pilot, the Hubei Emission Trading System (ETS), will launch on 2 April 2014. The central government body in charge of the national ETS, the National Development Reform Commission, has approved the start date, according to a local official.
The Hubei ETS will make use of two allowance products – HBA14 and HBA15 – and also offer 3% of allowances via auction to covered entitles, according to a second local official.
In total, 300m allowances will be allocated between 153 Hubei compliance companies, which represent 35% of the local emissions.
Covered entities will also be able to use offset credits to cover their emissions, though there is a 10% limit on the amount of offsets credits companies will be able to use to comply in the Hubei ETS. Only offset credits generated by projects within Hubei province, located in eastern China, can be used for compliance. Ling Ma