China launches ETS today
After several delays, China starts it emissions trading system for its power sector.
China’s long-awaited nationwide emissions trading scheme (ETS) will be officially launched on 19 December, starting with the power sector only, according to a document from National Development Reform Commission. Originally more sectors were planned to be included in the system (petrochemicals, chemicals, building materials, iron and steel, non-ferrous metals, paper, power and aviation), but according to the Commission their statistics could not be proved. Still, the Chinese ETS will be bigger than the EU ETS. Emissions from the power sector represent 46% of the country’s total emissions. The system will only allow spot transactions, but no futures or options.