GUANGZHOU: The first day’s trading in what will be by far the largest carbon market in China kicked off briskly yesterday with pricing in line with expectations, as Beijing continues its drive to slow its rapid growth of heat-trapping emissions.
Volumes in Guangdong’s carbon permit market, expected to be the world’s second largest in terms of carbon dioxide covered, in early trade surpassed full-day totals during the launches of the country’s three other carbon exchanges.
China, the world’s biggest emitter of greenhouse gases, wants to use markets to achieve its target to cut emissions per unit of gross domestic product to 40%-45% below 2005 levels by 2020 at the lowest possible cost.
Beijing, Shanghai and Shenzhen have already opened markets of their own, with Hubei province and the cities of Chongqing and Tianjin expected to follow in the next few months.
The debut trade on the China Emissions Exchange in Guangzhou went through in line with market expectations at 61 yuan (US$10.04), with cement firm Hailuo buying 20,000 carbon permits from the new energy arm of state-owned power producer Huadian Energy Co Ltd.
That was followed by a raft of other deals for a total of 120,000 permits, known as Guangdong Emissions Allowances, in the first 20 minutes of the market, all at 60 yuan each. – Reuters