‘Market’ refers to a system in which firms can buy and sell emissions allowances—permits to emit a certain amount of greenhouse gases.

Enterprises that emit less than their allowance can sell their excess allowances to those that emit more than their allowance, creating an incentive for companies to reduce their emissions, as they can make money by selling their allowances.

The trading market will help support the development of forestry carbon sequestration, renewable energy, methane emissions reduction, energy conservation and efficiency improvement projects, Liu was quoted as saying by a state-controlled media outlet.

It will encourage a wider range of industries and enterprises to participate in GHG emissions reduction to meet the country’s target of peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060.

Before the trading market is launched, the ministry has drafted a regulation on voluntary GHG emissions reduction and support for management systems with relevant departments, and has established related infrastructure and nationwide registration and trading systems, Liu added.

The market can help raise revenue for the government and promote innovation in low-carbon technologies.

Fibre2Fashion News Desk (DS)