China ETS requires power market reform
Policymakers’ ongoing preference for regulated power tariffs over market-based pricing is one of key problems China needs to address
China needs to reform its inflexible electricity markets before the country’s nascent emissions trading system (ETS) works properly, delegates heard at a recent Europe-China workshop on carbon markets in Shanghai in early November. China has the world’s largest electricity market but prices continue to be largely set by central government, which adjust rates based on a complex calculation involving the type and capacity size of generation source, end-user and location. This interferes with the proper working of the carbon market, according to Zhang Zhongxiang, founding dean of the Ma Yinchu School of Economics in Tianjin University. “Because electricity pricing is set by the government, we c
Also in this section
23 April 2024
Europe must unlock cross-border CO₂ trade if it wants to build a viable CCS sector for the long term
16 April 2024
US and European oil majors snap up smaller players and look to accelerate development in a region deemed to possess all the key elements for successful CCUS deployment
15 April 2024
Demand for credits seen rising 20% this year despite issues around integrity and standardisation
11 April 2024
Volatile allowance prices and small size of voluntary market undermine ability to drive investment, says Oxford Institute for Energy Studies