BEIJING Aug 31 China plans to roll out its
national market for carbon permit trading in 2016, an official
said Sunday, adding that the government is close to finalising
rules for what will be the world's biggest emissions trading
The world's biggest-emitting nation, accounting for nearly
30 percent of global greenhouse gas emissions, plans to use the
market to slow its rapid growth in climate-changing emissions.
China has pledged to reduce the amount of carbon it emits
per unit of GDP to 40-45 percent below 2005 levels by 2020.
It has already launched seven regional pilot markets in a
bid to gain experience ahead of a nationwide scheme.
"We will send over the national market regulations to the
State Council for approval by the end of the year," Sun Cuihua,
a senior climate official with the National Development and
Reform Commission (NDRC), told a conference in Beijing on
The national market will start in 2016, although some
provinces would be allowed to start later if they lacked the
technical infrastructure to participate from the outset, she
The Chinese market, when fully functional, would dwarf the
European emissions trading system, which is currently the
It would be the main carbon trading hub in Asia and the
Pacific, where Kazakhstan and New Zealand already operate
similar markets. South Korea will launch a national scheme on
Jan. 1, 2015, while Indonesia, Thailand and Vietnam are drawing
up plans for markets of their own.
The Chinese market will cap carbon dioxide emissions from
sources such as electricity generators and manufacturers. Those
that emit above their cap must buy permits in the market.
Five pilot markets that opened in China last year saw a high
degree of compliance by included emitters in their first year,
although data secrecy and a tendency to hand out too many
permits made them inefficient in cutting
The pilot schemes are keen to attract professional trading
companies to boost liquidity, and Shenzhen - the smallest of the
pilots - recently allowed trades to be settled in foreign
currencies in a bid to make trading easier for foreign
(Editing by Simon Cameron-Moore)