Correct Answer : Option (B) - China
China, the largest greenhouse emitter in the world, has finally launched its first national emissions-trading scheme. The carbon market was debuted by China on July 16, 2021, with trading in Shanghai opening at a price of 48 yuan ($7.40) per ton of carbon. The first deal in the market was closed at 52.78 yuan per ton.
As per Nikkei Asia Report, roughly 1,60,000 tons of carbon worth 7.9 million yuan were traded. Some experts have also estimated that within the next 5 years, China’s carbon market can reach 7 billion tons annually, hitting a market value of 600 billion yuan.
Carbon-pricing mechanisms, as launched by China, exist in around 45 countries already. However, China’s scheme which began trading only last week is the biggest in the world.
China’s carbon market: What do we know ?
The Carbon market project in China announced over three years ago, has been dodged by delays. But following its launch, the carbon market includes over 2,200 companies in the country’s power sector, which reportedly accounts for 40% of China’s total carbon footprint.
In time, the Carbon Market in China is expected to further expand to cover operators in the cement and steel sectors as well.