Rich Gilmore …Carbon Growth Partners …LinkedIn
The China ETS could be gigantically consequential for climate change, carbon markets and for investments in general. 💡📈
Not sure? Check out the chart below.
👉 In 2023, the EU ETS turned over an estimated $949 billion of trade, on 1.39 billion tonnes of covered emissions.
👉 That means, at the average price of $90/tn, each allowance changed hands an average of 7.58 times
👉 The same year, the China ETS turned over $2.2 billion on 5 billion tonnes of covered emisisons.
👉 That means at the average price of $9.62/tn, each allowance traded 0.045 times.
👉 China has announced it will extend emissions coverage to 8 billion tonnes and offset projects can be used for 5% of that.
What does all that mean? 🤔
It means if we get liquidity and pricing in China anything like we have in Europe, add voluntary trade and regulated trade from Japan, Korea, Australia, NZ, Singapore, US and others… John Kerry might just be right when we says carbon can become “the biggest marketplace the world will have ever known”.
