The first trading of voluntary greenhouse gas emission reduction in China was done on Jan 22, marking improvement of China’s carbon market construction. The diversified carbon market system will improve the country’s green and low carbon development.
At the launch ceremony of the national market of trading of voluntary greenhouse gas emission reductions, China National Offshore Oil Corporation (CNOOC) purchased 250,000 metric tons of voluntary greenhouse gas emission reductions in an amount certified by the country, which means the company will reduce greenhouse gas emissions by 250,000 tons in its production.
Carbon trading in China consists of two parts: carbon emission rights trading and voluntary greenhouse gas emission reduction trading.
The latter is an innovative institutional regulation that encourages the entire society to participate in greenhouse gas emission reduction. It is expected to promote the formation of a national carbon market system that complements and connects mandatory and voluntary carbon markets.
Promoting construction of the voluntary greenhouse gas emission reduction trading market will support development of projects related to forestry carbon sinks, renewable energy, methane reduction, and energy efficiency, as well as energy conservation and efficiency improvement. It will encourage more enterprises in various fields to join in greenhouse gas emission reduction actions.
According to the China Beijing Green Exchange, with reference to the scale of the European Union’s carbon market it is predicted that after financialization of the Chinese carbon market the annual transaction volume in China may exceed 10 billion tons with a transaction value surpassing 1 trillion yuan ($139.61 billion), based on a quota of 7 to 8 billion tons.
(Executive editor: Xie Yunxiao)
