According to Zhao Yingmin, vice-minister of the Ministry of Ecology and Environment, the country's carbon trading market, which was launched in July 2021, recorded an increase in both trading volume and price.
As of the end of last year, more than 440 million tons of carbon allowances had been exchanged under the program for almost 24.9 billion yuan ($3.5 billion), he told a press conference hosted by the State Council Press Office on Monday. .
He said transaction volume during the second compliance period increased by 19% compared to the first compliance period, and sales increased by 89%.
“Overall, the price of carbon emission allowances is showing a stable upward trend,'' he said.
The price has increased to 80 yuan per tonne compared to 48 yuan per tonne at the market opening, he continued.
Carbon trading is the process of buying and selling greenhouse gas emission permits between designated emitters.
The program imposes carbon emission limits for each unit of electricity a power plant produces. After each trading cycle, operators can sell excess carbon emissions after complying with benchmarks. If you run out, you will need to purchase an allowance.
Initially, China's carbon trading market included 2,162 power generation companies across the country, covering about 4.5 billion tons of carbon dioxide emissions, the most covered in the world.
According to Zhao, the number of power generation companies in the market has increased to 2,257, and the targeted emissions have reached about 5.1 billion tons.