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China’s New Carbon Market Is Crippled by Low Turnover, Prices

  • Beijing exchange head says prices too low to spur clean energy
  • National carbon trading would benefit from adding derivatives
China Emissions

Photographer: Kevin Frayer/Getty Images

China’s new carbon market won’t be an effective brake on emissions until it attracts more participants and prices rise, according to the chief of a regional exchange that served as one of the pilots for national trading.

One impediment to the national market’s eventual success is a lack of depth in its products, Mei Dewen, the general manager of the Beijing Environment Exchange, said in an online briefing on Tuesday. Only physical trading among power companies is currently allowed, and adding derivatives and getting financial players involved would trigger more activity, said Mei.