China starts long-awaited carbon trading scheme

Subject : Environment / IR

Context : China has introduced the emissions trading system.

Concept :

The much-awaited scheme would act as a key tool in its quest to drive down climate change-causing greenhouse gases and go carbon neutral by 2060.
China has hailed it as the foundations for what would become the world’s biggest carbon trading market, forcing thousands of Chinese companies to cut their pollution or face deep economic hits.
The scheme will set pollution caps for big-power businesses for the first time, and allows firms to buy the right to pollute from others with a lower carbon footprint.

Additional Information

China is the world’s biggest carbon emitter and seeking to take a global leadership role on the climate crisis.
China’s coal, cement and steel production have all gone up as the government pours in billions of dollars to energy-intensive sectors to boost growth after the pandemic.
However, analysts say it is not a quick climate fix and could take years before China changes course.