China's National Emission Trading Scheme To Benefit Low Carbon Transition

BEIJING, (UrduPoint / Pakistan Point News - 12th Feb, 2021 ) :China's national emission-trading scheme will be a key policy lever to achieve the country's net-zero emission pledge, according to a report from Fitch Ratings.

The scheme's impact will increase over time as coverage expands, rules tighten and the supply of allowances is reduced, the report said.

A set of interim rules for carbon emissions trading management in China came into effect on February 1, marking a key step in the establishment of a unified national emission-trading scheme amid the country's all-out efforts to meet its 2060 carbon-neutral target.

A total of 2,225 power firms across the country, assigned with carbon dioxide emission caps, can trade their emission quotas via the system, whereby firms that exceed their caps can purchase unused quotas from those with low emissions.

Although the initial impact of the scheme is likely to be limited, Fitch said it expects the rules to become stricter and for obligations to increase over time as policymakers step up efforts to meet emission pledges.

China has announced that it will strive to bring carbon dioxide emissions to a peak before 2030 and become carbon neutral before 2060 to tackle climate change.