July 16, 2018 – Shanghai announced that it will offer 2 million carbon allowances in an additional auction on July 31. The goal of this auction is to help emitters comply with the ETS after shortages of certificate supply. The auctioning will be limited to ETS participants and the allowances bought must be used for compliance. Originally, this year’s compliance deadline had been set for June 30. It was postponed by a month due to some emitters facing compliance problems because they were unable to purchase permits. This situation was caused by the tendency of many potential sellers to hoard their allowances due to uncertainties related to the transition to the national ETS.
Years of groundwork came to a conclusion with the official ushering in of trading in the Chinese national emissions trading system (ETS) on 16 July