China’s national emissions trading scheme (ETS) may play a crucial role in helping the country meet its carbon-neutrality goals by potentially lowering carbon emission by between 30 and 60% of current levels by 2060, reports the South China Morning Post.
Although the ETS’s initial impact would be limited, it could bring about a more material change in industries and companies it covers by the middle of this decade, according to the report by the Asia Investor Group on Climate Change (AIGCC), a network of asset owners and financial institutions representing more than $26 trillion in assets under management, and global asset management company Schroders.
“The launch of the national ETS could be one of the most significant drivers of carbon abatement in Asia and, with the right settings, will be instrumental in delivering China’s goals of peak emissions before 2030 and carbon neutrality by 2060,” said Wong Dan Chi, the AIGCC’s vice-chair and Schroders’ head of ESG integration APAC, to the SCMP.
