China eyes expansion of emissions trading system

Prices in world’s largest compliance market have risen this year but remain below those seen in the EU

China’s three-year-old ETS will expand through the remainder of this decade to include more polluting industries and institutional investors. However, growing the carbon market with confidence will require improvements in the reliability and accuracy of sectoral emissions data, delegates heard at a recent conference in Shanghai. The biggest compliance market in the world is approaching the end of an eventful year, during which the price of permits surpassed RMB100/t ($14/t) and the Chinese government announced a number of new regulations to pave the way for further development. The price of China Emissions Allowances (CEAs) closed at RMB105.65/t on 14 November, the highest on record since tr