The FT reports:
China saw its first-ever domestic transaction in the right to discharge carbon dioxide at the launch of its first pilot carbon market on Tuesday, moving the world’s largest CO2 emitting country closer to capping such pollution…
But the pilot market starts at a difficult time for global carbon markets including the world’s largest, the EU’s Emissions Trading System, which is struggling with record price falls as the sluggish economy exacerbates an oversupply of emissions permits.
The prices of the first permits sold on the Shenzhen market were about 25 per cent lower than benchmark prices in the EU Emissions Trading System, where permits were trading for €4.65 a tonne at midday on Tuesday. [Emphasis added]