China's securities regulator is mulling emissions trading futures to boost green development.
It can help the country fulfill its promise to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, said Fang Xinghai, vice chairman of the China Securities Regulatory Commission, in the city of Shenzhen, south China's Guangdong Province, on Saturday.
China has piloted emissions trading in seven provinces and cities, including Beijing, Shanghai and Shenzhen, since 2011 to explore market-based mechanisms to control greenhouse gas emissions.
According to the World Bank, there are two types of carbon pricing: emissions trading systems (ETS) and carbon taxes. An ETS, sometimes referred to as a cap-and-trade system, caps the total level of greenhouse gas emissions. However, it then allows those industries with low emissions to sell their extra allowances to larger emitters.