China Carbon Trading Market Opens
16th July 2021
Trading has commenced on China's national carbon emissions trading scheme (ETS) or the China Carbon Trading Market. In pursuit of carbon peaking by 2030 and neutrality by 2060, the ETS is a market mechanism which, in its first phase, will cover over 2,225 power plants (which collectively emit over 4,000 million tonnes of CO2 per annum) and is expected to be expanded to include so-called hard-to-abate sectors like cement, steel and aluminium. The ETS will be the largest in the world, covering approximately 12% of global CO2 emissions. For CCS, which often requires a value on CO2 to drive investment, mechanisms like the ETS are important.