China will Start Trading in Harmful Emissions
OREANDA-NEWS. The Chinese authorities announced the launch of a emissions trading system. Experts fear that an increase in pollution permits will exacerbate the problem with global warming, writes Bloomberg.
The nationwide Emissions Trading Scheme (ETS) will start operating in July at the Shanghai Environment and Energy Exchange (SEEE). Initially, the initiative will cover more than two thousand organizations in the energy sector, which account for about half of the greenhouse gas generated in the country.
The government will give each power plant the right to a certain amount of carbon dioxide emissions per year. If the company operates "cleaner", the unused pollution right (or quota) can be sold. Those enterprises that are not ready to reduce environmental damage from their activities will have to buy additional quotas. According to Deputy Minister of Ecology and Environment Zhao Yingmin, pilot versions of the system have already been tested in a number of provinces in China.
“CO2 emissions are still estimated at about $ 6.18 per ton. We need a reasonable price to demonstrate China's determination to achieve carbon neutrality, to send a positive signal to businesses that are committed to reducing emissions, ”the official said.
Emissions trading could backfire, analysts estimate. Already carbon-intensive enterprises will become even more dangerous for the environment. According to SEEE forecasts, the new market for pollution control will become the largest in the world and will eventually reach up to ten thousand enterprises in the PRC, which account for about five billion tons of carbon dioxide.