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China's carbon trading market departs in late June

China's carbon trading market will start operating from the end of June after three years of planning, China's Itsai (Yicai) media reported, citing Lai Xiaomin, chairman of the Shanghai Environment and Energy Exchange, adding that the basic structure of the trading system and relevant regulations are completed, transmits Radio China.
Real tests involving more than 30 Chinese businesses have been taking place since last week and will continue for some time to remedy any potential problems, according to Lai.

The main objective of this market is to serve companies to reduce carbon emissions so that they achieve this at lower costs under a market-oriented mechanism, says Lai Xiaomin, noting that the essence is to form a reasonable pricing system.

As the carbon market is relatively limited compared to capital based on long-standing experiments with seven domestic pilot companies, whose total transactions reach 10 billion yuan ($1.55 billion) and the trading volume is about 500 million tonnes, it will be relatively small. However, there is a need to engage more firms from high-energy industries to the trading regime and increase the variety of deals that will be essential for building the country's carbon trading market, the expert adds.

The Ministry of Ecology and Environment issued three regulations on 19 May aimed at further standardising registration, trade and carbon rights, which are key to the functioning of the market.