Review of China national carbon market in 2022
The year 2022 marked the first full year that China’s national ETS was operational, as trading began in H2 2021. Trading was limited compared to more established carbon markets, especially in Europe and North America. Throughout 2022, the program continued without the Chinese government having released a new allocation plan or having relaunched its domestic offset program. Though the Chinese pilot ETS – some of which have been active since 2013 – continue to operate, they saw a significant drop in volumes during 2022 as power sector emitters switched increasingly to the national ETS.