China’s carbon trading market is celebrating its third anniversary, marking a significant milestone in the nation’s journey towards greener power generation. Since its launch three years ago, the market has been steadily promoting energy companies to adopt cleaner practices, according to the Chinese Ministry of Ecology and Environment.
Known as the carbon emission rights trading market, it serves as one of China’s core policy tools to achieve its carbon peaking and neutrality goals. The mechanism sets a carbon emission cap within a specific timeframe and allocates quotas to companies. This incentivizes businesses to reduce emissions\u2014companies that emit less than their quota can sell their surplus, while those exceeding their limits must purchase additional quotas.
As of Monday, the market has transacted over 460 million tonnes of carbon emission quotas, amounting to 27 billion yuan (about $3.7 billion), according to official data. Over the past three years, the closing price of carbon dioxide per tonne has risen from over 40 yuan (about $5.5) to around 90 yuan (about $12.4), with historical highs exceeding 100 yuan (about $13.8).
The rising carbon prices are encouraging more than 2,000 coal-fired power enterprises to conserve energy and reduce emissions. \
Reference(s):
China's carbon trading market helps power companies become greener
cgtn.com
