A coal-fired power plant in Hangzhou in China's eastern Zhejiang Province on July 16, the day trading began in China's national carbon market. © AP

China fires up carbon trading as Asia turns onto greener path

World's biggest polluter debuts national emissions system, but limits remain lenient

AKANE OKUTSU, KIM JAEWON and CK TAN, Nikkei staff writers

July 19, 2021 06:02 JST

TOKYO/SEOUL/SHANGHAI -- Asia's nascent market for buying and selling carbon emissions has been boosted after China, the world's biggest polluter, launched a long-awaited national trading system.

Trading began in Shanghai on Friday with an opening price of 48 yuan ($7.40) per ton of carbon, and the first deal traded at 52.78 yuan per ton. Some 160,000 tons worth 7.9 million yuan were traded. Local media Yicai reported that in five years' time the market could reach 7 billion tons annually, with a market value of 600 billion yuan.