China to launch national pilot carbon market in 2016

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.

Introduction to China's carbon market

Chinese carbon market analyst Jian Wei Lim presents an insightful report about the newest China cap and trade programme.

This report will bring the reader up to speed on China's pilot carbon emissions trading scheme (ETS)

China carbon prices, news, forecasts and market analysis



The China ETS News & Analysis helps participants in the 7 pilot schemes manage risk and understand the impact of policy developments.  We deliver this analysis and insight through regular briefings, intra-day analyst updates, price forecasts, news and in-depth research reports that shine a light on key topics affecting the carbon industry.

All of our analysis is based on the unique Timing Impact Model, which uses historical and forecasted behaviour of market participants in the pilot schemes to predict how carbon future prices will be impacted


Why subscribe to the China ETS News and Analysis service?
  • Understand how news and events will impact the seven pilot schemes
  • See where prices are heading and understand the factors driving change
  • Find out more about key topics through a combination of commentary, quantitative data and insightful graphs 
  • Benefit from ICIS experience of analysing the global carbon markets