China Will Launch the Domestic Market for Carbon Trade Next Year

“China is sure to launch the domestic market for carbon trade next year.” Expressed Gao Zhengqi, General Manager of Tianjin Climate Exchange. The new domestic market for carbon trade will adopt the mode of voluntary emission reduction (VER).

Domestic carbon market to be launched next year

Gao Zhengqi disclosed that the relative measures for the carbon trade market, something that restricted China’s carbon trade in the past, are now in the process of being reviewed by the National Development and Reform Commission, and are expected to be released next year.

The successive establishment of the Beijing Environment Exchange, Shanghai Environment Energy Exchange (20.96,-0.41,-1.92%) and Tianjin Climate Exchange in 2008 indicates that China has made its first step in building the carbon market. However, due to insufficient policies and laws, a carbon trade market like those booming in foreign counties has been unable to be established in China.

“Present carbon trades in China are mainly fraudulent buying and selling actions in light of the rules made by European carbon market. A genuine carbon market has not yet emerged in China.” Gao said.

At the end of last month, Tianjin Climate Exchange initiated the “VER Actions” in China to experiment on the systems for the measuring, reporting and verifying of greenhouse gases like carbon dioxide and on systems for emissions reduction and trading that comply with China’s national situation and corporate situation.

Gao Zhengqi disclosed yesterday that such actions have smoothly entered the design stages, namely, the designing of market rules. More than 20 domestic enterprises including CNPC (13.09,-0.08,-0.61%), CHNG, Guohua have declared intent to join such actions. (Source: First Financial Daily).