In Depth: China’s Push to Expand Its Carbon Market

Price of pollution permits surges as policymakers beef up fines for non-compliance and look to end ‘quota hoarding

Big changes are afoot for China’s three-year-old national carbon market.

They began in January, when the certified carbon emission reductions (CCERs) — were reintroduced. The voluntary market is also preparing to expand beyond power plants into a number of primary manufacturing industries.

Then on Tuesday, the Ministry of Ecology and Environment (MEE) released draft rules tightening the carbon allowances allocated to market participants for the mandatory national Emissions Trading System (ETS), aimed at boosting market activity and promoting power generators’ green and low-carbon transition.