China expands carbon emissions trading market

Chinese authorities are endeavouring to expand its carbon trading market as soon as possible. Zhao Yingmin, Vice Minister of the Ministry of Ecology and Environment, said the ministry is making preparations to include seven more industries that emit carbon in the market. Currently, only the power generation sector is participating. This is reported by China Daily, a partner of TV BRICS.

The second implementation period of the programme has shown an increase in the volume and turnover in carbon trading. According to Zhao Yingmin, the ministry conducts an annual audit of carbon accounting not only in the power generation sector but also in seven other major carbon-emitting industries, including steel, building materials and non-ferrous metals.

The ministry has almost finalised a number of documents for the seven industries to be included in the market, including the allocation of carbon emission allowances and the compilation of carbon accounting verification reports, he said.

A greenhouse gas emissions trading system is a market-based instrument for reducing greenhouse gas emissions that operates on a cap-and-trade basis. In essence, it is an economic mechanism for reducing greenhouse gas emissions.

The government can impose strict emission limits on businesses, but such a decision will have a negative impact on business and the economy as a whole. CO2 markets allow companies to make a more gentle transition to environmentally friendly technologies, and in some cases to make money on it.

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