China’s carbon emission trading system will gradually mature over the next few years and play a crucial role in emission reduction from 2020, says a report released in Beijing on July 10, Science and Technology Daily reported.
The price of carbon dioxide is predicted to rise from 51 yuan ($7.7) per ton in 2020 to 86 yuan in 2025.
The 2018 China Carbon Pricing Survey was conducted by the China Carbon Forum with support from Tsinghua University, the Dutch Emissions Authority (NEa) and the Norwegian Environment Agency.
The report indicates that carbon trading has an increasingly important influence on investment decision-making. About three quarters of respondents believe that carbon trading will play a significant role in 2025, when a series of policies will be adopted by China to reduce carbon emissions.
Establishment of the carbon market mechanism will be a critical path for achieving environmental protection and carbon emission reduction goals, said Wang Ke, associate professor at the School of Environment & Natural Resources, Renmin University of China.
Wang pointed out that enterprises should make long-term decisions to respond to new regulation requirements.
Marc Allessie, director of NEa, noted that China’s carbon market development has sent clear price signals, which is of great significance for the establishment and development of carbon markets in other countries, adding that China’s successful operation of the market will effectively promote a global response to climate change.