China’s New Carbon Market Rules Aim to Reduce Oversupply
- Rules give power plants less options to cover excess emissions
- Market criticized for muted success in curbing emissions
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China has published new rules for its national carbon market, aimed at reducing an oversupply of permits to compel large polluters to accelerate their green transitions.
Participants in the market will no longer be able to borrow allowances from future years and will have stricter limits on carrying over unused permits from previous years, the Ministry of Ecology and Environment said in draft rules released Tuesday for consultation until July 10. The moves are intended to leave the market with a “slight shortage” of allowances, the ministry said in a statement.