China to Reduce Supply of Carbon Permits to Cut Greenhouse Gas Emissions

(Bloomberg) — China has published new rules for its national carbon market, intended to reduce an oversupply of permits which allow their owner to emit a certain amount of greenhouse gases. The aim is to compel large polluters to accelerate their green transition.

Participants in the market will no longer be able to borrow allowances from future years and will have stricter limits on carrying over unused permits from previous years, the Ministry of Ecology and Environment said in draft rules released Tuesday and which will go out for consultation until July 10.