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China lays foundation for compliance carbon market financialization, but policy uncertainties remain

September 20, 2023 Comments Off

China has started to differentiate emission allowances in its national compliance market by vintages, laying the foundation for financial derivatives, but the financialization of the market remains a massive puzzle amid crucial pieces missing, especially long-term policies and concrete timelines for key developments. From Aug. 28, the Shanghai Environment and Energy Exchange, or SEEE, which hosts the trading system of…