Climate Changed

China Sets Out Scaled-Back Vision for Biggest Carbon Market

  • Initial program will be limited to the nation’s power sector
  • System to cover 1,700 companies at first, will be expanded
Bloomberg New Energy Finance’s Sophie Lu explains why China set out a scaled-back vision to create a carbon market.(Source: Bloomberg)
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China set out a scaled-back vision to create the world’s biggest financial market aimed at limiting pollution in a move that signals its backing for the fight against climate change.

The government in Beijing said Tuesday it’s working on a carbon emissions trading system that will cover 1,700 utilities. That’s fewer than the 6,000 companies across a range of industries authorities were considering for inclusion as recently as a year ago. Policymakers also stopped short of naming a date for trading to begin.