The State Council of the country has issued a new development plan for the region
China will establish a carbon futures trading platform in Guangzhou, the capital of the southern province of Guangdong, as part of efforts to help develop the Greater Bay Area of Guangdong-Hong Kong-Macao.
The State Council of the country has issued a new development plan for the region, stating that China must “promote low-carbon pilot demonstration zones, carry out projects of zero carbon emission demonstration zones and accelerate the research and development of low carbon technologies “.
The Guangzhou platform will be the first in the Great Bay area of Guangdong-Hong Kong-Macao
China has established carbon emissions trading in seven cities including Beijing, Shanghai, Guangzhou and Shenzhen since the 2015 UN Climate Change Conference in Paris. The country has exchanged the equivalent of 197 million tons of carbon dioxide in September 2017, according to official data.
The Guangzhou platform will be the first in the Great Bay area of Guangdong-Hong Kong-Macao and has long been coveted by market participants.
The city is aiming for the approval of a green financial reform
The area in question will have to go in a different direction from the others if it wants to set up its own futures exchange, as confirmed by the former General Manager of GF Futures Xiao Cheng. He then added that, in addition to the launch of new products, he could also consider futures on the commodity price index.
The city will do its best to get approval from the central government to create a green financial reform and a pilot area for innovation, said Qiu Yitong, director of the Guangzhou Municipal Financial Regulatory Office at a meeting in 2016 The area will promote green credit, green bonds and insurance, carbon finance and other innovative financial products.
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