–experts: carbon trading is a key measure to deal with climate change: experts

(Global Times) It has been a year since China’s national carbon market started online trading in Shanghai on July 16, 2021. As of Friday, the cumulative trading volume of the carbon market reached 194 million tonnes, with a cumulative turnover of 8.49 billion yuan ($1.26 billion), according to data released by the Shanghai Environment and Energy Exchange (SEEE).

One year on, the smooth operation of the carbon market reflects the significant progress made by the country to promote reduction of carbon emission. It has helped to form the function of carbon pricing, Ma Jun, director of the Beijing-based Institute of Public and Environmental Affairs, told the Global Times on Saturday.

China’s emissions trading system is already the world’s largest carbon spot market, financial news site stcn.com reported on Saturday.
Carbon trading is the process of buying and selling permits to emit carbon dioxide or other greenhouse gases. Ma said that this type of high-efficiency market-oriented approach is needed to reach peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

As a core step to realise carbon neutrality, carbon trading has the function of reflecting the cost of carbon. With a higher sensibility over carbon cost, industrial players would be more active in implementing low-carbon production measures, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Sunday.

On the other hand, carbon trading also helps optimise resource allocation without changing total carbon emissions, Lin said.
Greenhouse gas emissions have become an urgent challenge facing all countries around the world. China, as the world’s largest developing country, has been actively contributing to global efforts to address climate change.

Carbon market and carbon pricing mechanism are important measures to deal with global climate change, China’s special climate envoy Xie Zhenhua said at the China International Carbon Trading Conference, jointly held by SEEE and Shanghai United Assets and Equity Exchange, on Saturday, to celebrate the one year anniversary.

As early as in 2011, China launched attempts to establish up carbon trading markets. From 2013 to 2014, China initiated several trial markets in Beijing, Tianjin, Shanghai and other cities.
After 10 years regional trials and preparation, China’s national carbon market started online trading on July 16, 2021 at the SEEE with the opening price for the carbon quota at 48 yuan per ton.

As a first step, 2,162 power companies were included in the trading system, a group representing total emissions of about 4.5 billion tonnes each year. By trading in the carbon market, companies can calculate their carbon emissions more effectively and precisely, following by disclosure progress which is of great significance to further promote the reduction of carbon emission, Ma said.