July 16 marks the third anniversary of China's national carbon market, a pivotal step in the nation's green transition. As of July 15, 2024, the market has facilitated the trading of over 460 million tonnes of carbon emission allowances, amassing a cumulative transaction value of nearly 27 billion yuan ($3.86 billion).
Over the past three years, the price per tonne of carbon dioxide emissions has surged from more than 40 yuan to approximately 90 yuan, with record highs exceeding 100 yuan. This significant increase in carbon pricing has played a crucial role in promoting the green transformation of power generation enterprises.
The stable operation of the carbon market has not only encouraged companies to reduce their emissions but also provided a profitable avenue for those with surplus carbon allowances. Yu Xiang, director at the Institute of Ecological Civilization of the Chinese Academy of Social Sciences, explained that higher carbon prices compel enterprises to either lower their emissions or sell their excess allowances, thereby incentivizing sustainable practices.
One notable example is Huadian Xiangyang Power Generation Corporation in Hubei Province. The company has been utilizing tree bark and other agricultural waste to generate electricity through biomass power generation, effectively reducing carbon dioxide emissions by 50,000 tonnes annually. Yang Tao, head of biomass operation and maintenance at the company, highlighted that these efforts have freed up carbon quotas for other generators, resulting in annual savings of 2 million yuan.
The development of China's carbon trading market underscores the country's commitment to sustainable growth and environmental stewardship, setting a benchmark for global efforts in combating climate change.
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China's national carbon market incentivizes green transition
cgtn.com
