Supply security is a key concern for Beijing
China’s carbon trading offers little gas-to-power help
Generation from the cleanest fossil fuel looks set to struggle to expand in China despite the start of carbon trading
China’s much-delayed carbon market went live at the start of February, a decade after the idea was first floated and initially covering only the power sector. The scheme includes some 2,225 coal and gas-fired generation facilities, responsible for more than 40pc of China’s carbon emissions, and is not expected to begin trading until June. The gas industry had hoped the start of carbon trading would boost the competitiveness of gas-to-power by raising the cost of coal generation to more than gas, which is one of the most expensive forms of electricity production in China. [Gas-fired power plants] are largely still relegated to filling peak demand requirements rather than operating basel
Also in this section
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
1 December 2025
The North African producer’s first bidding round in almost two decades is an important milestone but the recent extension suggests a degree of trepidation
