From Chinadaily
China's national carbon trading market has witnessed significant growth since it was launched in July 2021, with trading volume and value both increasing substantially, according to the Ministry of Ecology and Environment.
As of July 15, about 465 million metric tons of carbon emission allowances have been traded in the market for nearly 27 billion yuan ($3.7 billion), according to a report on the market issued by the ministry at a conference in Wuhan, capital of Hubei province in Central China, on Sunday.
Carbon trading is the process of buying and selling permits to emit greenhouse gases among designated emitters. Launched in July 2021 as the largest in the world, the country's national carbon trading market currently only involves the coal-fired power generation sector.
The program imposes carbon emission limits for every unit of electricity a power plant generates. After each compliance period, coal-fired power companies can sell in the following year any carbon allowances they have left over after complying with the benchmark. If they fall short, they will have to buy allowances.
The trading volume and value in the market's 2021-22 compliance period increased by about 47 percent and 125 percent, respectively, from the first one, which lasted from 2019 to 2020, the report said.