Carbon pricing gains traction: Al Attiyah Foundation – MENAFN.COM

Carbon pricing gains traction: Al Attiyah Foundation – MENAFN.COM

Doha: Around the world, climate change policies are tightening, and carbon pricing is playing a big part of that. Once carbon pricing systems are in place, countries can apply pressure to emitters at will – representing the stick part of any energy transition policy, alongside the carrot of possible subsidies and guarantees for cleaner options. New carbon markets have recently been introduced in China, the UK and elsewhere, while prices on the well-established European market have surged as credits are reduced and countries toughen climate change commitments. As prices rise, lower carbon options become more commercially attractive as high emitters incur additional costs. After testing carbon credit trading at regional level since 2011, China launched a nationwide carbon market for its power sector in February. Initial allocations are free, with prices only expected to be introduced slowly and cautiously to protect investors in the coal sector. The move is part of China's efforts to reach net-zero emissions by 2060 and expected to cover over 4 billion tonnes of greenhouse gas emissions, making it the world's largest. China's power sector is only responsible for about 30 percent of the country's total emissions, and industries such as cement, metals, and petrochemicals will