The establishment of an international carbon emission trading center in the Hainan Free Trade Port to demonstrate the nation’s low-carbon transformation and further open up its financial markets, has received the green light. To be registered in Sanya and expected to be in operation in the latter half of the year, the carbon emission trading center was one of the key international trading venues to be promoted in the construction of the Hainan Free Trade Port (FTP). The master plan for the Hainan FTP released by the central government in June 2020 said that international trading venues for energy, shipping, bulk commodities, intellectual property rights, equities and carbon emission rights would be set up in Hainan. The plan aims to build Hainan into a globally influential high-level free trade port by the middle of the century.
The center will provide capital support for all kinds of carbon-related financial products and boost the reduction of carbon emissions and energy consumption to serve the national green and low-carbon development strategy. Establishing the international carbon market in Hainan is an important way to achieve the nation’s goals for peak carbon emissions and carbon neutrality, and a crucial link in developing a market-oriented ecological compensation mechanism, officials said. Experts said that construction of the Hainan International Carbon Emission Trading Center is of critical significance.
“Hainan FTP has an excellent market environment and preferential tax policies, which will bolster long-term market expectations. Hainan’s practice in piloting international carbon emissions trading will be a example for other parts of the country,” Zhang Jianhong, Senior Engineer with China International Engineering Consulting said. Efforts are underway to accelerate the building of new international trading places for products and services such as equities, options and shipping, the China Daily reports.
