Posted: 19 Jul 2021
An article from the Wall Street Journal states that the price of carbon in China is still clearly too low, and the market itself still excludes key energy users like steel. Both need to change soon. Without a declining supply of total credits over time and auctions as in Europe—rather than just allowances distributed to power producers based on their previous years’ power and carbon output as in China’s current system—substantial emissions cuts could remain elusive.
The carbon market closed at 51.23 yuan, equivalent to $7.91USD, per metric ton on Friday according to Thomson Reuters. That is still well below prices in Europe, where a metric ton will cost you around $60, and probably below levels needed to really change behavior.