Carbon trading gives wings to China’s green goals

As an important milestone in its progress on climate action, China's national exchange for carbon emissions trading began operations in 2021. The national carbon market celebrated its first anniversary in July and has now replaced the European Union Emissions Trading System — the EU ETS — as the world's largest carbon trading system by coverage, including over 2,000 companies in the power sector and involving more than 4.5 billion metric tons of carbon dioxide per year, said China's Ministry of Ecology and Environment. 

Despite its sheer size, China's national carbon emissions trading market is still nascent and has much to learn from Europe's experience in developing a robust carbon market. 

Our capital markets counsel, Wayne Huang, authored an article for China Daily, sharing his insights on the development of carbon trading in China and how the carbon market plays an essential role in achieving China’s green goals. Click here to read the full feature story.