Zhou and Ye expect China to keep the pilot exchanges even after the national system debuts. Carbon prices among exchanges will tend to unify based on a national standard of quota allocation, Zhou said.
China has announced its national program will cover eight industries including papermaking and aviation. Beijing Municipal Commission of Development and Reform said in January that it’s studying plans to link its allocated emission quotas with the national market’s allowances, along with rules regulating the repurchasing of quotas.
Emission allowances given to local companies excluded by the eight industries will still be effective and could be traded on the Beijing Environment Exchange, said Zhou.
The nation should consider the costs of emitters already included in pilot exchanges when it builds up the carbon market, Ye added.