China’s state-owned power giants have been asked to prepare reports on historical emissions that officials will use to set up the world’s largest carbon market, according to people familiar with the request. The China Electricity Council has asked firms for submissions by July, said the people, who asked not to be identified because the information isn’t public. The council will use the data to help determine the number of carbon allowances power generators can vie for when the market launches.
Carbon Cleaning
China’s carbon market targets one of the world’s most polluting sectors
Source: International Energy Agency
NOTE: Tons of carbon dioxide emitted from fuel combustion in 2017
The Ministry of Ecology and Environment, which will oversee the market, published a draft allocation plan last year after consulting with the council. It has since decided that the data wasn’t accurate and has asked for it to be redone with direct input from the utilities, according to the people. Officials at the ministry and at the council, an industry group representing power generators, didn’t return calls seeking comment.
China’s biggest power generators include China Energy Investment Corp., China Huaneng Group, State Power Investment Corp. and China Datang Corp. A CEIC spokesperson declined to comment. Emails sent to officials at the other companies were not immediately returned.
China is aiming to set up a national carbon market this year to cover the power sector, which accounts for half of the fossil fuel-derived emissions in the country and 14% of the entire world’s. The exchange in Shanghai that will host the market recently completed testing on the electronic platform that will trade the emissions.