03 Sep 2014 10:56:03 | edcm
China plans to launch a national pilot carbon market in 2016, deputy director of the National Development and Reform Commission (NDRC)’s Climate Change Department announced last Sunday.
The emission allowances will be allocated by NDRC, deputy director Sun Cuihua said during the 2014 China Low-carbon Development Strategy Conference held in Beijing. In the early stage, some provinces will be included in the trading system while the others will need to achieve their overall carbon emission targets. Meanwhile, carbon emission will be introduced into the national statistical system and further reforms are expected to be carried out in order to define the responsibility of the government as well as market participants and to facilitate innovation regarding the trading system of the carbon market.
An official from a carbon exchange told ICIS on Wednesday that the national pilot carbon market has significant influence on carbon trading system improvement. No matter which pilot emission trading scheme (ETS) succeeds in introducing new trading mechanisms in the market, it is very likely that it will be considered as a reference for the national pilot market.On the other hand, an official from a national generation company added, the covered entities will pay more attention to the allocation mechanism and whether the surplus allowance could be banked for the national pilot market. Considering the policy is uncertain at the moment, compliance entities would probably remain conservative at the moment.
Chinese carbon market analyst Jian Wei Lim presents an insightful report about the newest China cap and trade programme.
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