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DUBLIN, Ireland – (Business Wire) Research and Markets (http://www.researchandmarkets.com/research/b3f1d9/china_carbon_tradi) has announced the addition of the “China Carbon Trading Market 2008-2012″ report to their offering.
China – the new center for global carbon credit trading?
China is reported to be the world’s second-largest carbon dioxide producing country, and as such has become a hot spot for foreign carbon credit buyers and traders.
However, the current lack of transparency and immature market in China has created a murky environment with many unknowns, such as the extent of market openness, where to find the best projects, how to keep on top of trading risks and future carbon trading trends in the country.
To further our clients’ understanding of China’s carbon trading market up to 2012, Interfax China is scheduled to launch an industry-specific report on this topic on March 31, 2008.
The report, which is jointly written by our energy sector reporters and business researchers, will lay out in detail issues ranging from market status and major players, to trading opportunities and risks, policies and registrations procedures, as well as pricing trends with the latest statistics, in-depth analysis and well-researched forecasts.
China’s potential
China is widely believed to be one of the major markets for carbon trading projects in the world at the moment. United Nations’ statistics show that at present, China holds one-third of the total global carbon reduction credits, a proportion which is expected to increase to 41 percent by 2012.
As of Jan. 16, 2008, a total of 1,068 clean development mechanism (CDM) projects had secured approval from China’s chief economic planner, the National Development and Reform Commission (NDRC). Out of these, 154 projects have successfully registered with the global authority, the CDM Executive Board (EB), accounting for 16.78 percent of all its registered projects.
Despite uncertainty over the fast approaching 2012, when the current Kyoto Protocol expires, the Chinese government has been busily encouraging the market, and a growing number of both local companies and institutions are showing an increasing desire to acquire a share in and benefit from the booming market.
China is currently facing many problems due to inefficient energy utilization and increasing climate pressure, and this has become a stumbling block to the rapid and sustained growth of the domestic economy. The central government is currently very interested in using carbon trading to both combat inefficient energy utilization and to expose Chinese companies to foreign capital and technology transfers.
Price issues
Price will continue to be a sensitive issue in carbon trading in the near future. Globally, carbon trading prices are influenced by two main factors; firstly, scheduled projects that have a history of under-delivering on the number of credits stated in their PDD document, which can lead to supply shortfalls; and secondly, the absence of post-2012 agreements, which increases uncertainty and discourages technology transfers and investment in projects.
Agreements are expected to increase significantly in 2009.
However in China, the situation is somewhat more complicated.
Although the government has set a floor price for carbon trading at EUR 10 ($14.64) per ton, it is still cost-effective for foreign credit buyers to cooperate with Chinese project developers, as overseas carbon trading takes place at between EUR 20 ($29.26) and EUR 30 ($43.89) per ton. Chinese companies, who are unwilling to accept the lower domestic price, are appealing for a more flexible pricing mechanism that links domestic prices to international prices.
Key Topics Covered:
Introduction
Key Findings
Kyoto Protocol and Clean Development Mechanism
Cdm Market in China
Cdm Projects in China
Policy Study
Carbon Price
China Renewable Energy Industry Overview
Company Profiles
For more information visit http://www.researchandmarkets.com/research/b3f1d9/china_carbon_tradi
Laura Wood
Senior Manager
[email protected]
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
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