China to start carbon trading market next year

China will certainly start a domestic carbon trading market within the next year, Gao Zhengqi, general manager of Tianjin Emission Exchange, told CBN reporters on Monday.

By then, enterprise voluntary emission reduction (VER) activity will be implemented in the new domestic carbon trading market.

In the emerging global carbon trading market, China should actively participate in building carbon markets, to seek rights for carbon pricing.

Otherwise, China, at the bottom of the global carbon trading chain, will face the loss of pricing power, like that in the international oil market, said Yang Zhi, head of Renmin University of China research institute on climate change and low-carbon economy.

Yang said that China's real economy enterprises had contributed to a large amount of emission reduction. Last year, the volume of Certification Emission Reduction (CER) created by China's Clean Development Mechanism projects (CDM) accounted for 84% of the world’s total, ranking first.

However, these CERs have developed into a more expensive financial products and derivatives to be traded after being purchased by developed countries at lower prices.

By People's Daily Online