China has taken the first step towards launching its much-delayed carbon emissions trading scheme by setting emissions quotas for companies in the power sector.
The long-awaited scheme, which is expected to be the world’s largest carbon trading market, has been beset by delays and was initially scheduled for launch in 2017.
Environmentalists have hailed the plans for the country’s carbon market as a sign that China, regularly criticised for its environmental transgressions, is moving towards a more sustainable future.
“Setting emissions levels and credit allocation is a supremely important signal to companies and an important milestone,” said Liu Shuang, a director at Energy Foundation China. “The emergence of a carbon market in China is tremendously influential.”
Since announcing plans for a national trading scheme two years ago, China has experienced numerous delays in trying to create a carbon market from scratch.