China expected to delay to carbon market launch

3 June 2020 (Last Updated June 3rd, 2020 16:27)

GlobalData analysts have said they expect China to delay the launch of its carbon  market designed to tackle the country’s choking pollution problems.

The Chinese ruling party ordered eight industries, including electric power and oil to submit carbon emission data before the end of March. However, the analysts expect Covid-19 has delayed this process.

Senior power analyst Somik Das said: “The pandemic has prevented officials from conducting the verification process of the companies reporting the emissions data.

“In April, the province of Guangdong had pushed back its annual compliance deadline for companies by two months in its emissions trading scheme, giving companies more time to finalize their 2019 data verification. Hence, further delays would only push back the establishment of the market and raise doubts over the possibility of meeting the deadline.

“The government seems to be taking a softer stance on environmental accountability to lower the cost burden on business and spur economic activity, which could see a delay in the integration of businesses into the carbon market.”