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China’s emissions trading market likely to see expansion, rising carbon price in 2022, say analysts
- The carbon price in the emissions trading scheme (ETS) could reach 65 yuan per tonne this year, up from 54.22 yuan at the end of 2021, Refinitiv forecasts
- However, the scheme - which has just concluded its first compliance period - could still do with some tweaks, they said
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China’s carbon trading market will see further expansion and an increase in prices in 2022, analysts predicted.
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However, the scheme, which has just concluded its first compliance period, could still do with some tweaks to navigate clouds on the horizon, they said.
The carbon price in the national emissions trading scheme (ETS) could reach 65 yuan (US$10.19) per tonne in 2022, compared to 54.22 yuan per tonne at the end of 2021, according to one forecast. Trading volumes will further increase as China welcomes more participants into the market, climate experts believe.
The first compliance period of the ETS ended on December 31, a few months after the official launch of online trading in July last year.
The compliance rate was 99.5 per cent, meaning that virtually all of the 2,162 power sector enterprises participating in the scheme held carbon allowances that were at least equal to their actual emissions in 2019 and 2020.
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