Stock market

China to limit daily price swings in national emissions trading to 10% -media

Stock Markets34 minutes ago (May 28, 2021 01:21AM ET)China to limit daily price swings in national emissions trading to 10% -media© Reuters.

BEIJING (Reuters) – China’s national emission trading scheme (ETS) will initially set daily trading limits at 10% of prices when it comes on line late in June, according to a report in the Securities Times citing the chairman of the exchange that will host the trading.

In its first phase, China’s long-awaited national ETS, seen as a key Beijing policy lever to achieve the country’s net-zero emission pledge, will cover some 2,225 power plants across China, responsible for about 4 billion tonnes of carbon emission each year.

The Securities Times cited Lai Xiaoming, the Chairman of the Shanghai Environment and Energy Exchange, in its report. Lai also said limits for block deals in national ETS will be set at 30% of price moves at the beginning, and adjusted in accordance to market movements.

While Lai’s exchange will host trading, the Wuhan exchange will manage the ETS registry platform.

Financial institutions or individual investors will not be allowed to participate in trading in the early stage of the national ETS, restricted to carbon-emitting utilities, but as soon as the trading mechanism matures, institution investors would be included, said Lai.

At a conference last Saturday, Lai said China is looking to bring two more sectors into carbon emission verification this year and include them into the national ETS next year.

China had aimed to cover eight high-emission industries, including petrochemicals, chemicals, building materials, non-ferrous, papermaking, steel, power generation and aviation, into the national trading scheme.China to limit daily price swings in national emissions trading to 10% -mediaAdd a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s