China's carbon trading market just celebrated its third birthday on Tuesday! 🎂 Since its launch three years ago, it's been steadily helping power companies go green and reduce emissions, according to the Ministry of Ecology and Environment.
So, what's the deal with this carbon market? Think of it like a game where companies get a limited number of 'carbon credits'—like lives in a video game. If they use less, they can sell the extras for cash 💰. If they use more, they have to buy more credits. It's all about encouraging businesses to lower their emissions.
As of Monday, over 460 million tonnes of carbon emission quotas have been traded, totaling about 27 billion yuan (roughly $3.7 billion)! That's a lot of green for going green. 🌿
Prices for carbon dioxide per tonne have climbed from over 40 yuan (about $5.5) at the start to around 90 yuan (about $12.4), even hitting over 100 yuan (about $13.8) at one point. 📈 This rise is pushing over 2,000 coal-fired power companies to save energy and cut emissions.
Yu Xiang, director at the Research Institute of Eco-Civilization, says, \"The higher the price, the higher the cost for companies to buy carbon emission quotas. For those with extras, selling them means higher profits. These price changes motivate company decisions.\"
Right now, the market includes coal-fired power companies, but soon, energy-intensive industries like steelmaking and construction might join in! 🏗️ Experts are also hoping that tech advancements will bring down emission reduction costs.
Xu Huaqing, chief scientist at the National Center for Climate Change Strategy Research and International Cooperation, believes that the carbon market is a big deal. \"It's a major innovation using market mechanisms to control and reduce greenhouse gas emissions and promote green and low-carbon development. It's an important tool for achieving carbon peaking and neutrality and shows China's active response to climate change,\" he said.
With the carbon market growing and evolving, the Chinese mainland is pushing forward on its green journey. 🌎♻️ Who knew trading emissions could be so impactful?
Reference(s):
China's carbon trading market helps power companies become greener
cgtn.com
