Emissions Trading

China emissions trading scheme’s impact seen growing over time

Entities with excess emissions to be required to buy allowances in open market under scheme, whose operational phase began on Feb. 1, with power sector operators covered initially.

The marketplace for emissions trading that is widely expected to take off in China in a few months will force polluters and inefficient energy consumers to fall in line over time through economic disincentives, though challenges to implementation remain.

Fitch Ratings sees the Emission Trading Scheme ETS as key for China to achieve President Xi Jinping’s pledge to achieve carbon neutrality by 2060, with the scheme’s impact expected to increase progressively as coverage expands and rules tighten, and also as emission allowances that are currently allowed are reduced over time.

“The initial impact of the ETS is likely to be limited,” the ratings agency said in a...

¬ Haymarket Media Limited. All rights reserved.

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222