Posted on 24 Jul 2024
China will step up the push to include key carbon-emitting industries such as steelmaking, cement and aluminum smelting into the national carbon emission trading market, Huang Runqiu, Minister of Ecology and Environment, reiterated at a conference on July 21.
"China's carbon market is operating in a stable and orderly manner overall," Huang summarized.
The cumulative trading volume of carbon emission allowances (CEAs) in the market amounted to 465.7 million tonnes, nearing a total value of Yuan 27 billion ($3.7 billion) as of July 22, according to the latest data from the Shanghai Environment and Energy Exchange, the trading venue of the national carbon market.
Launched in July 2021, China's national carbon market or emission trading scheme (ETS) has completed two compliance cycles, covering an annual carbon dioxide emission of about 5.1 billion tonnes, which accounts for more than 40% of the country's total emissions. It is also the largest carbon market around the world in terms of greenhouse gas emissions covered, Mysteel Global learned.
By the end of 2023, the compliance rate for the second compliance cycle (2021-2022) reached 99.88%, and the trading scale expanded too, with the cumulative trading volume and value of CEAs surging 47% and 125.3% respectively compared with the first compliance cycle (2019-2020), according to the country's carbon market development report.
On the other hand, China's national voluntary greenhouse gas emission reduction trading market was started in January this year, serving as another vital market policy tool to help realize carbon peak and carbon neutrality.
Huang stated that efforts will be accelerated to advance the construction of the national carbon market, including continuous enhancement of data quality management, gradual implementation of paid CEAs allocation and diversification of trading entities, trading varieties and trading methods.
The ministry also expects to explore feasible paths for carbon financial activities and fully leverage the carbon market to promote low-cost greenhouse gas emission reduction, according to Huang.
Source:Mysteel Global
