Low-carbon economy
is a core concept within the idea of sustainable development. Low-carbon
economy promotes the development of clean and renewable energy that emits less
pollution and carbon. Through such economic mode it is possible for a society
to achieve both advancement of economic development and natural conservation.
China in recent
years has been gradually adopting the low-carbon economic mode by reducing
carbon emission and encouraging the advancement of energy-saving and recycle
technologies. The China Carbon Emission Trading Scheme is designed as a market
mechanism to control the carbon emission. Since 2011 when the market was first
launched in pilot cities, China Carbon Market has gone through several stages
and now the National Market was ready for initiation in 2017.
By the end of 2018, the total carbon trading volumes
in China reached 800 million tons with Hubei Emission Exchange contributes the
most (330 million tons, 42.14% of total volumes). For the trading turnover, the
total amount has reached 11 billion Yuan by 2018, with Hubei Emission Exchange completed
the most turnover - about 66% of the total amount. The average trading price
between 2013-2018 was 14.4 Yuan/ton. Only Hubei, Shenzhen and Fujian Emission
Exchange had an average trading price over the average number.
Researchers
believe that the low trading price is due to the uncertainties presented in the
market. However, trading price in 2018 is rising with Beijing Emission Exchange
reached a price of 52.72 Yuan/ton. According to the projection from NDRC, the
ideal trading price should reach 300 Yuan/ton. Given that the current average
price is 22 Yuan/ton, the China Carbon Market still has the potential to reach
a size that is 10 times bigger than the present.