Pilot carbon offset markets' inconsistent regulations cause price variations

Price discrepancies between carbon offsets at seven pilot emissions trading schemes throughout mainland China have introduced uncertainties to the country’s preliminary carbon trading environment thanks to varying regulations, Reuters reported, citing carbon trading firms. Beijing and Shanghai have banned the use of pre-2013 Chinese Certified Emissions Reductions, offsets that are cheaper than regular permits but only cover 5-10% of a firm’s emissions. The two cities’ bans could depress prices for offsets from older projects and might cut compliance costs in those markets that choose to accept them, as 99.5% of the 14 million such reductions issued so far were achieved before 2013.