The marketplace for emissions trading that is widely expected to take off in China in a few months will force polluters and inefficient energy consumers to fall in line over time through economic disincentives, though challenges to implementation remain.
Fitch Ratings sees the Emission Trading Scheme ETS as key for China to achieve President Xi Jinping’s pledge to achieve carbon neutrality by 2060, with the scheme’s impact expected to increase progressively as coverage expands and rules tighten, and also as emission allowances that are currently allowed are reduced over time.
“The initial impact of the ETS is likely to be limited,” the ratings agency said in a...
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