The Chinese government is reportedly to consider a steeper cut in carbon quotas, which would result in a higher cost for small and inefficient coal power plants.
A person familiar with the plan told media that under Ministry of Ecology and Environment’s draft plan for carbon allowances for more than 2,000 power companies in 2021 and 2022, major coal plants will be allocated 7.9% less credits per megawatt-hour generated. The reduction is greater than the 1% reduction indicated previously. It would be considerably harsher on coal plants smaller than 300 megawatts in size, whose criteria would be reduced by 12%.
