China launches carbon market … restricted to electricity sector for now
The carbon market was launched on February 1 in China. For the moment, it only concerns the electricity sector, in a country where the power stations still operate very largely on coal (which covers 60% of needs).
For the first time, provincial authorities can set quotas and allow companies to exchange rights to pollute. A certificate is issued for each tonne of greenhouse gases that a company is authorized to emit. And in case of non-compliance, the latter must pay fines.
But these polluting permits are distributed free of charge, and not auctioned as is the case in the European Union. Result: it does not encourage to act quickly. In addition, the price of carbon should be very low, six times lower than in the EU. “Not dissuasive enough”, laments Li Shuo of Greenpeace.
As the world’s largest emitter of greenhouse gases, China is aiming for carbon neutrality (that is, to absorb as much as it emits) by 2060.
AFP
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