First compliance period completed in five Chinese ETS Pilots

In June and July 2014, the closing date for surrendering certificates for 2013 emissions expired in five of the seven emissions trading systems (ETS) in China: Beijing, Guangdong, Shanghai, Shenzhen and Tianjin. According to official sources, over 98% of the entities complied in time. In several cases, activity on the respective carbon markets substantially increased prior to the deadline. No detailed information on the entities’ emissions has been published yet. Companies in Hubei and Chongqing will be required to surrender allowances for their 2013 and 2014 emissions only in 2015, as these pilot ETS started respectively in April and June 2014.