[Explanation] In mid-July 2021, China's carbon emission trading market was officially launched and has been running for a period of time.
How is the carbon market different from the familiar stocks and other markets?
Is the current carbon price reasonable and effective?
Recently, Zhang Xiliang, head of the technical expert group for the overall design of the national carbon emissions trading system, answered the question in an exclusive interview with China News Service.
Zhang Xiliang introduced that the carbon market is essentially different from the stock market. The carbon market is a policy market that helps the country achieve carbon emission reduction targets.
[Concurrent] Zhang Xiliang, head of the technical expert group for the overall design of the national carbon emissions trading system
In the carbon market, the transaction is actually the transaction of allowances, which is the transaction of the permit carbon emission permit issued by the state, and then the transaction in the stock market is actually a transaction of corporate ownership. You buy stocks and become a company’s Shareholders.
The carbon market should be completely different from the stock market. In essence, I think it is still different, because the carbon market is generally a policy market that helps the country achieve carbon emission reduction targets.
[Explanation] At present, more than 30 countries and regions in the world have adopted or plan to adopt carbon market mechanisms to reduce carbon emissions. Among them, the EU and California have relatively mature carbon markets.
Zhang Xiliang said that the design of China's carbon market also fully refers to the experience of European and American carbon markets.
[Concurrent] Zhang Xiliang, head of the technical expert group for the overall design of the national carbon emissions trading system
China’s carbon market should be very active in the design and development process. We should pay great attention to drawing on some foreign carbon market development experiences. The EU carbon market, as well as the US carbon market, all adopt a multi-stage carbon market. The method of building a carbon market does not mean that it is perfect at the beginning. In China, it is actually building a carbon market in stages. You may also know that we first conducted 7 pilot projects.
In addition, we also realize that legislation is very important, because the carbon market is an economic activity, and some problems must be resolved through laws.
[Explanation] According to Zhang Xiliang, it is estimated that the current marginal cost of abatement on a full economic scale in China is about US$7.
For the carbon market to play an effective role, the carbon price should be greater than or equal to $7, and the current carbon price is just at this level.
[Concurrent] Zhang Xiliang, head of the technical expert group for the overall design of the national carbon emissions trading system
After the national carbon market was launched, our carbon price was about 8 US dollars per ton. I think this should also be a very good carbon price. According to our calculations, our country’s economic-scale marginal abatement costs are now about It is US$7, so we should say that if the carbon market plays an active and effective role, then the carbon price should be the same or higher than US$7, so that it can play an effective role.
Dong Zeyu Wang Chao reports from Beijing
Editor in charge: 【Luo Pan】