According to climate experts, poor quality data and supply shortages remain key hurdles for China’s national carbon emissions trading scheme (ETS). The world’s largest carbon market has seen lower-than-expected trading volume and weak carbon prices in the past year.
Carbon market in China is expected to see more liquidity later this year with the injection of new carbon allowances and the relaunch of its suspended voluntary carbon market, the China Certified Emission Reduction (CCER), said experts. But carbon prices will remain relatively low due to government management.
China’s ETS wrapped up its second year of operation on July 16 with the cumulative transaction volume of emissions allowances reaching 239.9 million tons, and market value hitting 11.03 billion yuan, according to the Shanghai Environment and Energy Exchange, the department that oversees the country’s ETS.
