BEIJING, Dec. 31 (Xinhua) -- After seven brokers were nodded to participate in carbon emission rights trading in late December, Southwest Securities' subsequent joining renewed the number of this batch of eligible brokers to eight, reported Xinhua-run Shanghai Securities News recently.
On December 25, Southwest Securities said it had obtained a reply from China Securities Regulatory Commission (CSRC), the Chinese securities regulator, to allow its participation in carbon emission rights trading via proprietary trading.
By December 26, there had been 16 securities brokers that were approved to take part in carbon emission rights trading. Apart from the eight newly-nodded ones, six received such approvals in February 2023 and two got permissions in 2014 and 2015 respectively.
Currently, securities brokers are acting as four types of roles in carbon market, namely the information and service intermediaries, transaction agents, financing bodies and product suppliers, according to Luo Dongyuan, deputy president of Guotai Junan Securities.
In practice, the sector has evolved five mature business modes, carbon emission rights trading, carbon emission reduction purchase agreement trading, outright repurchase, carbon quotas for emission reduction trading and carbon offsetting/neutrality trading, introduced Luo.
Analysts with the green finance department with Industrial Securities said that securities brokers' involvement could further unleash their advantages as financial intermediaries in improving carbon market effectiveness and maturity level and facilitating the "dual carbon" goals via market-oriented means.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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