China Seen Holding Back on Carbon-Permit Auctions This Year, Depending on Market Liquidity: Academic (1)

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.

Snip of slide presented by Duan

(Adds slide)

Photo by Paulo Marcelo Martins on Pexels.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s