Hubei reports 100% compliance in carbon market’s first year

Published 12:09 on August 20, 2015  /  Last updated at 18:30 on August 20, 2015  /  China, China's Pilot Markets  /  No Comments

All 138 companies covered by Hubei emissions trading scheme have now handed over CO2 allowances to cover their 2014 emissions, the provincial government announced Thursday, although one in five missed the deadline.

All 138 companies covered by Hubei emissions trading scheme have now handed over CO2 allowances to cover their 2014 emissions, the provincial government announced Thursday, although one in five missed the deadline.

Ensuring a high compliance rate is top priority for officials regulating China’s pilot carbon markets, even more so than reducing emissions, as enforcing environmental policies in China is traditionally an uphill struggle, especially for provincial and local governments.

Six of the seven pilot markets have now reported near-100% compliance for 2014, with only Chongqing left to release numbers.

The compliance deadline for the Hubei ETS was originally May 30, but was postponed to July 10 as government officials were making some late adjustments to allocation levels. Even with the extension, some 27 of the 138 firms missed the July deadline.

But by Wednesday, all 138 firms had surrendered the required number of allowances, the Hubei DRC said in government newspaper Hubei Daily.

The report gave no information on whether the companies that missed the July 10 deadline would face penalties. The Hubei ETS market regulations allow the government to fine non-compliers by up to 150,000 yuan.

The ETS participants emitted 236 million tonnes of CO2 in 2014, 3.2% down on the previous year.

By Stian Reklev – stian@carbon-pulse.com

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