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Second year of China’s emissions trading

The first trading cycle of the Chinese national carbon trading scheme has been completed: Time to take stock. And the results are mixed. On the positive side, the system started successfully: Trading of CO2 emission allowances has been underway on the Shanghai Environment and Energy Exchange (SEEE) since mid-July. But even though there have been actual transactions on the market, 2021 should more be considered a test run for a future, more comprehensive ETS. This is because the instrument so far had little impact on emissions due to low coverage:

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