(Economic Observation) Launch of the world's largest carbon market: another major milestone in China's response to climate change
China News Service, Beijing, July 16th. Title: Launch of the world's largest carbon market: Another major milestone in China's response to climate change
China News Agency reporter Ruan Yulin
On the 16th, the national carbon emission rights trading kicked off, marking the official launch of the world's largest carbon market.
Authorities pointed out that the online trading of the national carbon market marks another major milestone in China's efforts to tackle climate change.
The launch ceremony of the national carbon emission trading market was held in Beijing, Shanghai and Wuhan.
Huang Runqiu, Minister of China's Ministry of Ecology and Environment, stated that the national carbon emissions trading market is an institutional innovation that uses market mechanisms to control and reduce greenhouse gas emissions and promote green and low-carbon development.
This year is the first compliance cycle of the national carbon market. More than 2,000 key emission units have been included in the power generation industry. According to estimates, the carbon emissions of companies covered by the first batch of carbon markets have exceeded 4 billion tons of carbon dioxide, which means China’s carbon emissions trading market. Once launched, it has become the world's largest carbon market covering greenhouse gas emissions.
At 9:30 on the same day, the national carbon emission rights trading was officially launched at the Shanghai Environmental Energy Exchange. The opening price of the carbon emission allowance trading was 48 yuan per ton; at 9:32, the first transaction was successfully matched, and the transaction price was per ton. 52.78 yuan, a total of 160,000 tons were traded, and the transaction volume was 7.9 million yuan.
According to reports, about six minutes after the opening of the market, a total of 450,000 tons of listed agreement transactions have been traded, with a turnover of more than 22 million yuan. The latest price has increased by 8.54% relative to the opening price.
According to the relevant regulations of the Ministry of Ecology and Environment, before the establishment of the National Carbon Emissions Trading Agency, the Shanghai Environmental Energy Exchange Co., Ltd. was responsible for the specific tasks such as account opening and operation and maintenance of the National Carbon Emissions Trading System.
Carbon emission allowance (CEA) trading methods include listing agreement trading, block agreement trading, and one-way bidding.
The maximum declared volume of a single transaction for listing agreement transactions should be less than 100,000 tons of carbon dioxide equivalent.
According to reports, that morning, the price increase of carbon trading expanded to 10%, triggering trading restrictions, and reported 52.8 yuan.
The national carbon market listing transaction limit is 10%, and the block transaction limit is 30%. This limit will be adjusted according to market risks.
According to regulations, when abnormal fluctuations in transaction prices trigger adjustment and protection mechanisms, the Ministry of Ecology and Environment can take measures such as open market operations and adjustment of the use of national certified voluntary emission reductions to make necessary market adjustments.
The construction of China's carbon market started from local pilot projects. In October 2011, local pilot projects for carbon emission trading were launched in Beijing, Tianjin, Shanghai, Chongqing, Guangdong, Hubei, and Shenzhen.
Since 2013, 7 local pilot carbon markets have successively launched online trading, which has effectively promoted the reduction of greenhouse gas emissions by enterprises in the pilot provinces and cities, and has also explored a system for the construction of the national carbon market.
At the end of 2017, with the approval of the State Council, the "National Carbon Emissions Trading Market Construction Plan" was issued and implemented, requiring the establishment of a unified national carbon emission trading market.
Zhao Yingmin, deputy minister of the Ministry of Ecology and Environment, pointed out that domestic and foreign practices have shown that the carbon market is a policy tool to achieve specific emission reduction targets at a lower cost. Compared with traditional administrative management methods, it can consolidate the responsibility of greenhouse gas emission control to enterprises. It can also provide corresponding economic incentives for carbon emission reduction, reduce the emission reduction costs of the whole society, and drive green technological innovation and industrial investment, and provide an effective tool for handling the relationship between economic development and carbon emission reduction.
Fred Krupp, president of the US Environmental Protection Association, issued a statement on the 16th, pointing out that the online trading of the national carbon market marks another major milestone in China’s response to climate change, and also drew attention to the preparations for the official operation of the world’s largest carbon market. The end of the consummation.
Ke Ruihua said that China has proposed that carbon dioxide emissions will reach a peak by 2030 and strive to achieve carbon neutrality by 2060, and the national carbon market will be one of the core policy tools to achieve the above goals.
A well-functioning carbon market can not only help achieve high-quality peaks, but also accelerate efforts to reduce carbon emissions.
China's promotion of the construction and operation of the national carbon market signifies its firm confidence in participating in global climate governance.
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