Connect with us

World

China’s carbon exchanges bend the rules to meet compliance targets

Legacy Phuket Gazette

Published 

 on 

China’s carbon exchanges bend the rules to meet compliance targets | The Thaiger
  • follow us in feedly

PHUKET MEDIA WATCH

– World news selected by Gazette editors for Phuket’s international community

China’s carbon exchanges bend the rules to meet compliance targets
Phuket Gazette / Reuters


PHUKET: The vast majority of firms covered by China’s pilot carbon emission exchanges met their
targets this year, but success was achieved largely by flexible regulations and a supply glut that kept permits cheap, participants said.

After China’s Chongqing met its deadline on Thursday, all seven of the country’s pilot emissions trading schemes have now finished the trading year, with nearly all complying. A total of 35 million permits have been traded, with prices ranging from 11.7 yuan ($1.88) in Shanghai and 42 yuan in Beijing.

Ahead of talks in Paris at the end of 2015 on a new binding global climate accord, China has pledged to bring greenhouse gases to a peak by around 2030, and the pilot exchanges have been set up with the aim of creating market incentives to cut emissions.

However, it remains unclear how much the emissions trading schemes have contributed to CO2 cuts. Beijing, Hubei and Guangdong said participants achieved year-on-year reductions of 5.96 percent, 3.19 percent and 1.5 percent in 2014, but the remainder have yet to give numbers.

“We can’t really say the market has been very successful – some pilots have done better but others need to improve,” said Richard Mao with the Beijing-based Environomist consultancy.

More than 99 percent of companies covered in Shanghai, Beijing, Guangdong, Shenzhen and Tianjin met their targets on time, but compliance has been achieved by bending the rules.

Only Shanghai and Shenzhen stuck to original deadlines, with the remainder giving firms as long as six extra weeks to avoid defaulting. In Hubei, 26 firms failed to comply by the second deadline of July 10. Chongqing has yet to publish results.

China aims to integrate the fragmented markets into a nationwide scheme next year, and will need to create a nationally tradeable product, but it has yet to decide on a conversion formula, and prices continue to diverge.

The markets remain affected by oversupply as well as the availability of 10.8 million offset credits at much cheaper prices of between 7-23 yuan.

The market is supposed to give firms a financial incentive to cut emissions, but with prices low, the sale of surplus permits does not come close to covering mitigation costs, said Ge Chenghui, who runs the environmental protection department at China’s biggest refiner, Sinopec.

“The decline to merely 20 yuan for each permit is a result of the government easing supplies. Our mitigation costs are much higher than that,” he said.

($1 = 6.2091 Chinese yuan)

— Phuket Gazette Editors

Keep in contact with The Thaiger by following our Facebook page.
Never miss out on future posts by following The Thaiger.



Find more SE Asian News courtesy of The Thaiger.

Broke? Find employment in Southeast Asia with JobCute Thailand. Rich? Invest in real estate across Asia with FazWaz Property Group. Even book medical procedures worldwide with MyMediTravel, all powered by DB Ventures.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

World

The world’s Top 10 languages, spoken by native speakers

The Thaiger

Published

on

The world’s Top 10 languages, spoken by native speakers | The Thaiger

I battle to speak one language, English, and can barely order my lunch in Thai. And, whilst studying French for 7 years at school, I can only ask a French-speaker for the time or order coffee. Sacre Bleu! Figuring out the world’s most common languages changes over time. And you can be sure the conversation will stir some heated conversation. But the numbers win (which we have refined over the past year). For pop culturalists, we’re sad to report that neither ‘Klingon’ (used by the Star Trek foes) or ‘Minionese’ have made it into the top 10 most spoken languages […]

Continue Reading

Coronavirus (Covid-19)

China re-affirms commitment to cooperate with Thailand over Covid vaccine

The Thaiger & The Nation

Published

on

China re-affirms commitment to cooperate with Thailand over Covid vaccine | The Thaiger

China is re-affirming its commitment to cooperate with Thailand over potential Covid-19 vaccines after its Chinese Ambassador to Thailand’s meeting with the Deputy PM Prawit today. Yang Xin furthered the partnership by offering China’s guidance and equipment support to facilitate testing, research and sourcing of an anti-Covid vaccine. Xin, the Chinese Charge d’Affaires, emphasised the importance of a good relationship between the two countries noting Thailand’s earlier support at the onset of the Covid pandemic. Now, he adds that China will also help Thailand recover its economy by continuing to support its popular farm produce exports into the country. At […]

Continue Reading

World

Travellers from Thailand can enter United Kingdom without quarantine

Caitlin Ashworth

Published

on

Travellers from Thailand can enter United Kingdom without quarantine | The Thaiger
PHOTO: Unsplash: Anthony Rosset

No more quarantine for those travelling from Thailand and entering the United Kingdom. Thailand and Singapore will be added to the UK’s so called “travel corridor” list starting tomorrow. The Thailand Foreign Ministry deputy spokesperson Natapanu Nopakun says this is “good news, adding that Thailand’s Covid-19 prevention methods have been recognised by other nations. He says several countries have removed Thailand from their so called “watch lists.” Israel and Germany also stopped requiring quarantine for travellers coming from Thailand. “Including Thailand in the list is good news because it will have a very positive effect, especially in the Thai business […]

Continue Reading
Follow The Thaiger by email:

Trending