CX Daily: China’s Carbon Trading Market Hobbled by Unanswered Questions
Carbon /
China for the first time
asked domestic companies to shoulder the responsibility for controlling the country’s greenhouse gas emissions by buying and selling emission quotas on a unified national carbon market.
The sheer scale of the problem could create the world’s largest carbon trading market, but big structural factors stand in the way.
Systemic issues in China’s power generation industry are likely to prevent companies from effectively participating in the national carbon market: the pressure that the added cost of carbon will put on the far-from-market-driven industry and the lack of an absolute cap on the amount of carbon that can be emitted under the program.