The International Emissions Trading Association (IETA) lauded the Chinese government’s launch of its national emissions trading system (ETS) – capping off a busy year for carbon market developments around the world, IETA announced on Tuesday.
"The National Development and Reform Commission announced today that its ETS would cover just power and heat generators initially, which represent emissions of about 3 billion tonnes of CO2," the statement read.
An initial verification period of 12 months is expected before the allocation is complete, the statement added.
Dirk Forrister, president and CEO of IETA said in the statement that China is joining a growing number of jurisdictions, such as California, the EU and South Korea in their quest to cut emissions.
He added that these countries are using market-based measures to cut climate emissions in a cost-effective and efficient way.
"China will have the world’s largest carbon market, drawing lessons from these other markets to ensure that it works in harmony with other national policies. We commend the Chinese government for taking these steps to realize its long-term vision," Forrister said.
In its latest ETS Status Report, the International Carbon Action Partnership estimated that around half of the world’s GDP would be subject to an emissions trading market by the end of 2017.
(Anadolu Agency)
