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China’s Hainan Province Eyes International Carbon Trading Platform

Officials on Hainan Island are considering setting up an international carbon emissions trading exchange to connect China’s national trading scheme with the global market


Woman wearing a mask walks past buildings on a polluted day in Hebei
The bureau's data does not fully capture the property malaise across the roughly 300 cities classified as third-tier or lower, or even include the 2,000 smaller county-level cities and 40,000 towns. By some estimates, small cities and towns account for around 1 billion of China's 1.44 billion population.. Photo: Reuters.

 

China‘s Hainan province says it is considering setting up an international carbon emissions trading exchange to connect the country‘s national trading scheme with the global market, as part of moves to open up the province for economic reforms.

Last June, China gave the southern island province ‘free trade port’ status, which it aims to make fully functional by 2035, building an offshore centre of trade and finance to streamline the flow of commodities, capital and talent.

The proposed emission trading platform was among a range of proposals released by the Hainan provincial government late on Wednesday. It gave no further details.

China, the world’s biggest emitter of climate warming gases, launched its long-awaited national carbon emissions trading scheme (ETS) in mid-July, and has long envisaged a link-up with overseas counterparts.

 

LONG-TERM VISION

Experts, however, say this could take at least a decade as the Chinese market has yet to fully establish itself.

“The link of the carbon markets of China and the EU can be a mid- to long-term vision for cooperation between the two parties,” Duan Maosheng, director at the Center for China Carbon Market Research in Tsinghua University, said.

As of Sept 1, carbon was trading on China‘s ETS at an average price of 49.30 yuan (6.45 euros) per tonne, well below about 60 euro a tonne on the European Union’s ETS.

 

• Reuters and Jim Pollard

 

ALSO SEE:

China’s Emissions Trading Market Opens with 4m Tonnes of CO2 Deals

China must nix its coal addition to reach carbon neutral pledge

New coal projects in China make up 90% of global total

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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