Carbon emission futures, which are an important aspect of carbon trading, will be introduced when the market matures, according to Gao Li, a spokesperson for the China Securities Regulatory Commission.
China’s national carbon emission trading system – which adopts a dual city model by trading in Shanghai and accepting applications in Wuhan, Hubei province – is scheduled to go operational at the end of June. The development of carbon emission futures will help to enhance the efficiency of carbon pricing and better meet the market entities’ need to manage the fluctuations in carbon pricing, said Gao.
Guangzhou Futures Exchange will enlist CSRC’s assistance in conducting thorough study and finalizing trading rules for carbon emission contracts. She stated that carbon emission futures will be implemented when the time is right.