The emissions trading scheme initially applies solely to the energy production sector, which accounts for 46 percent of the country's CO2 emissions. Later, the system will also include other sectors (petrochemicals, chemicals, construction materials, steel, metals, papermaking and aviation), totaling over 6,000 companies.
For companies in these industries, participation in the new trading system will be mandatory. In case of companies exceeding their specific reduction goals, the thereby acquired greenhouse gas certificates can be traded in the new ETS. Should the goals not be met, certificates need to be bought until the goals are reached. Companies from unpledged sectors can also realize greenhouse gas reduction projects and sell the thereby generated greenhouse gas certificates in the new trading system.
Faktor-Plus is present in China and continuously explores the opportunities and risks arising from the new trading system. Together with our clients, we realize greenhouse gas emissions reduction projects, thus generating greenhouse gas certificates which are then traded in the new ETS.