Energy Fact & Opinion
By Jane Nakano
China released a roadmap for the nationwide carbon emissions trading scheme (ETS) on December 19, 2017.
The initial phase will focus on the power sector, involving 1,700 power companies, and the trading will be based in Shanghai.
The power sector ETS will cover over 3 billion tons of carbon dioxide annually—roughly one-third of total carbon emissions by China, which is the largest carbon emitter in the world today.
Under the plan, power companies—upon receiving credits—will first test out the ETS by simulating credit trading without actual payment.
The ETS will eventually include additional energy intensive sectors, such as iron, steel, cement and chemicals and the enforcement of emission limits will begin in 2019 or 2020.
How the credits will be allocated remains unknown.