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Rebooting China’s carbon credits: What will 2022 bring?
(China Dialogue, 9 Jun 2022) The return of carbon credit trading is eagerly awaited, but there are several challenges ahead.
Carbon market players are watching closely to see how China’s version of carbon credits, the China Certified Emission Reductions (CCER) scheme, will be rebooted.
Like carbon allowances, carbon credits are a tradeable item. They are essential for the operation of carbon markets and carbon pricing because they make profit possible via buying and selling.
China’s national carbon market opened in July last year, and the first implementation period for allowance trading is already complete. However, market players eager to see the CCER scheme up and running again are still waiting.
This article looks at the scheme’s history and explores some of the opportunities and challenges linked to bringing it back.
Why China set up its domestic carbon credit market
China’s targets to peak emissions before 2030 and reach net zero before 2060 have brought the attention of more Chinese people to carbon markets and the profit-making opportunities they provide. While the national carbon market is new, many don’t realise that China has already been running such trading platforms for over 10 years. The country started issuing CCERs in 2012 before suddenly halting them in 2017.
External link
China Dialogue, 9 Jun 2022: Rebooting China’s carbon credits: What will 2022 bring?
