Climate Cooperation China
On behalf of the International Climate Initiative (IKI)

Chairman of SHEEEX expects 2-3 additional sectors to be covered by national ETS in the next year

Currently, the accounting opening for covered companies is almost completed and the market is expected to become more active in the following months. More sectors might be included in the national ETS in the next year

Photo Credit: Pixabay, Pexels

On 17 August 2021, Shanghai Securities News interviewed Mr LAI Xiaoming, Chairman of Shanghai Environment and Energy Exchange. The interview covered questions about the national ETS online trading performance in its first month, measures for market liquidity and recommendations for future development. Mr LAI said that the ETS would include another two to three sectors next year.

Currently, around 1600 covered enterprises have opened a trading account in the national ETS; with all covered companies completed accounting opening soon, the market is expected to become more active in the coming months.

As many firms claim a lack of knowledge on carbon trading, Mr LAI outlined that SHEEEX would support local enterprises to strengthen their capacity to participate in the carbon market as well as to manage their carbon assets.

Besides, SHEEEX is eager to learn from international experience for market innovation and aim at increasing trading products step by step.

LAI closed by raising policy recommendations for the further development of the carbon market during the 14th Five-Year Plan Period.

  • Strengthen the legal and policy framework of the national ETS
  • Gradually expand coverage of the national ETS to eight sectors
  • Introduce investors into the national carbon market
  • Explore a market maker mechanism to increase liquidity
  • Improve the MRV system
  •  Introduce auctioning and then increase its ratio
  •  Facilitate innovation on trading products
  • Establish a comprehensive administrative framework for the national ETS

Read more (CN)

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