May 25-25, 2021: China may not auction carbon allowances this year under its new national greenhouse gas market, but the first transactions of allowances should take place next month, according to Duan Maosheng of Tsinghua University.
China is giving most of its carbon credits away to emitters, helping them get used to carbon pricing. This strategy was deployed in the European Union when it started its carbon market in 2005.
China’s market has been delayed as the nation completed its registry system, which tracks ownership of carbon allowances and credits, the academic said May 25 at the Innovate4climate event.
Whether or not auctions are needed this year may depend on the liquidity of the carbon market, Duan said.