Sharm El Sheikh, Egypt, November 15 The twenty-seventh Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) is being held in Sharm El Sheikh, Egypt. Zhao Yingmin, head of China‘s climate change negotiating delegation and vice minister of the Ministry of Ecology and Environment, said at a related event on the 15th that China will gradually expand the scope of industries and trading entities covered by the carbon market, and gradually establish a carbon market with international influence.
Zhao Yingmin delivered a speech at the “China Carbon Market Development and Prospects Side Event” held at the China Corner of COP27 on the same day, saying that the carbon market is an important policy tool for China to implement the goal of carbon neutrality at the peak of carbon emissions. A major institutional innovation for the market mechanism to control greenhouse gas emissions. In July 2021, China‘s carbon market officially launched online transactions. In the first compliance cycle, a total of 2,162 key emission units in the power generation industry were included, covering an annual carbon dioxide emission of about 4.5 billion tons, making it the largest carbon market in the world. As of November 11, 2022, the cumulative trading volume of China‘s carbon market allowances was 197 million tons, and the cumulative trading volume was 8.674 billion yuan.
“Although it has made a good start, compared with the mature international carbon market, China‘s carbon market still needs to be improved.” Zhao Yingmin said that China will insist on the national carbon market as a control greenhouse in the next step The basic positioning of gas emission policy tools is to gradually expand the scope of industry coverage and trading entities, enrich trading varieties and trading methods, and gradually establish a carbon market with international influence on the basis of the stable and effective operation of the quota spot market in the power generation industry.
Clara de la Torre, Acting Director General of the European Commission’s Climate Action Directorate-General, said that the EU and China have cooperated in carbon trading for more than ten years, and the EU supports China in establishing an efficient carbon market system, establish the necessary pricing mechanism, and reduce carbon emissions. She said that the EU believes that China‘s carbon market can be further developed in order to achieve China‘s “double carbon” target.
Carbon market mechanism and cooperation are the main content of Article 6 of the Paris Agreement, and the implementation of relevant content will help promote the continuous participation of public and private sectors in climate change mitigation actions. Zhao Yingmin said at the meeting that the COP27 conference is negotiating for the full implementation of Article 6 of the Paris Agreement as soon as possible.