Carbon emission trading market is scheduled to be officially launched

Carbon emission trading market is scheduled to be officially launched

The much-watched China carbon emission trading market is scheduled to be officially launched for trading at the end of June this year. Recently, various signals released from the central to the local indicate that various preparations are in place, and enterprises in many places and industries are ready to meet the layout of tuyere cards in advance. Recently, the Shanghai United Property Rights Exchange announced on its official micro and official website that the national carbon emission trading system has recently passed the technical acceptance.

According to data from the Ministry of Ecology and Environment, since 2011, China has carried out carbon emission trading pilots in 7 provinces and cities. As of March this year, it has covered more than 20 industries and nearly 3,000 key emission companies, covering a total of 440 million tons of carbon emissions. The accumulated transaction amount is about 10.47 billion yuan.

According to the classification of carbon trading, China’s carbon trading market currently has two types of basic products: one is the carbon emission allowance allocated by the government to enterprises; the other is the national certified voluntary emission reduction (CCER).

CCER refers to the quantitative verification of the greenhouse gas emission reduction effects of renewable energy, forestry carbon sinks, methane utilization and other projects in China, and the greenhouse gas emission reductions registered in the national greenhouse gas emission reduction transaction registration system. Soochow Securities predicts that the initial CCER demand in the national carbon market is about 165 million tons/year, and the long-term demand is expected to expand to 400 million tons/year. The first batch of key power plants that are included in the national carbon market quota management are expected to exceed 3.3 billion tons/year. According to the 5% carbon emission allowance offset ratio, the annual CCER demand for the entire China carbon market is about 165 million tons/year. According to the Beijing Central Exchange’s forecast, after the national carbon market expands to eight industries in the future, the total carbon emissions included in the quota management will reach 7-8 billion tons/year, and the demand for CCER will reach 350-400 million tons/year.


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