Emissions Trading Scheme (ETS) (China)

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China’s national GHG emissions trading scheme.

The ETS obliged >2,000 big GHG emitters in the power sector to account for their emissions in 2019 and 2020. The current scope of the ETS includes annual emissions close to 4.5 billion tonnes of CO2 per year, or around 40% of China’s total. Unlike similar schemes elsewhere, such as in the European Union, China’s allocation of emission allowance is not decided upfront via an absolute cap but is based instead on emissions intensity. One allowance means a company can emit 1 tonne of carbon.

Other emissions trading schemes also exist in other parts of the world. The largest currently in operation is the European Union emissions trading scheme.

See also: China Certified Emission Reduction (CCER), Emissions trading



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