Carbon analyst @RefinitivCarbon #EUETS #OCTT #CNETS. Research Associate @OxfordEnergy. Economist and Power Modeller. Views are my own.
Dec 6, 2021
⚠️First year of operation will not be smooth, but China's new national Carbon market is facing many more obstacles in run-up to looming compliance deadline.
'Free borrowing' practice and 'Unclear tax rules' could hamper the market #OCTT
What is Free Borrowing?
Ahead of looming Compliance deadline on 31 Dec, provincial Ecology and Environment authority is under pressure to ensure enterprises to surrender enough allowances in time.
However, allocation for 2019-2020 has not finalized
🇨🇳energy regulator announced 5 new Spot trading pilots, adding to previous 8 pilots since 2017.
In 2020, 8 pilots have all tested full-month continuous settlement, and will start with longer period trial spot trading this year.
NDRC announced the expansion of spot trading pilots at spot market weekly work meeting on 9 March.
In addition to 5 new pilots, it also aim to build regional power markets in Beijing-Tianjin-Hebei and Southern (led by Guangdong).