Photo taken on July 16, 2021 shows a view of the Shanghai Environment and Energy Exchange in east China's Shanghai. (Xinhua/Cheng Siqi)
BEIJING, Nov. 29 (Xinhua) -- China's national carbon market is expected to cover about seven billion tonnes of carbon dioxide emissions per year after it is fully developed with all eight industries participating in it, according to a research report on biomass projects participating in carbon trading market released recently.
According to the report, China's carbon market, an institutional innovation to facilitate emissions reduction, now only involves emitters from power generation industry, covering about four billion tonnes of carbon dioxide emissions, which is expected to offset 200 million carbon credits, equivalent to same amount of carbon dioxide that emitters are allowed to emit.
With more industries to participate in the country's carbon trading market, the emission covered is expected to reach seven billion tonnes, offsetting 350 million tonnes equivalent of carbon credits technically.
As emission quota and carbon credit become increasingly scarce, developed carbon trading market will turn from allocation to auction, which will make the amount of China Certified Emissions Reductions (CCER) predictable.
Besides, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is likely to become the most important international market for CCER international transactions, said the report, with a projection of 2.5 billion tonnes of carbon credits purchased by the international aviation industry on the condition that all major countries participate in the CORSIA.
The report is compiled by industrial players of biomass energy and carbon trading, including Biomass Energy Industry Promotion Association (BEIPA), Tianjin Climate Exchange, Beijing Songshan Low-carbon Technology Research Institute and Kunlun Trust Co., Ltd.
(Edited by Li Shimeng with Xinhua Silk Road, lishimeng@xinhua.org)
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