China’s carbon neutral goal: Shanghai emissions contracts to start trading in July, using market prices to drive towards target

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China will begin trading carbon emissions contracts later this month after eight years of trials, as the world’s largest emitter of greenhouse gases kicks off the crucial market-based mechanism to put the nation on track to meet its 2060 carbon neutral goal.

Leading the charge on the Shanghai Environment and Energy Exchange will be power plants and electricity generators – estimated to be responsible for 40 per cent of China’s carbon dioxide emissions – before seven other carbon-intensive industries join in the mandatory trading, according to a statement by the State Council, citing a directive by Premier Li Keqiang.