China’s southern province of Guangdong will start auctioning 3 million metric tons of carbon permits on Dec. 16 with the highest debut price in the nation.
Guangdong, the largest of seven carbon markets planned in China, set a minimum of 60 yuan ($9.90) per ton of emissions for the auction, according to a statement distributed on the website of the provincial Development and Reform Commission.
China, the world’s biggest emitter of greenhouse gases linked to climate change, started markets in three cities earlier this year as the nation tries to reduce the intensity of its emissions. The Guangdong floor price is more than the minimum of 28 yuan a ton in Shenzhen, 25 yuan in Shanghai and 50 yuan in Beijing.
The price of the first trade “will probably be even higher and would be the highest starting price of the Chinese pilots so far,” Charlie Cao, a Beijing-based analyst from Bloomberg New Energy Finance, said in an e-mail today.
Guangdong will allocate quotas for 388 million tons of carbon emissions to 242 companies by mid-December, according to a Nov. 26 statement on the website of its provincial Development and Reform Commission.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at firstname.lastname@example.org
To contact the editor responsible for this story: Reed Landberg at email@example.com