A wind farm generates power for grids in Zhoushan, Zhejiang province. [Photo by YAO FENG/FOR CHINA DAILY]

China's carbon emissions trading scheme will play a critical role in reducing costs of carbon reduction and spur the development of renewable energy resources in the country, while making valuable contributions to global efforts to combat climate change, a top Chinese corporate official said.

Pan Hao, acting general manager of SPIC Carbon Asset Management Co Ltd, a subsidiary of State Power Investment Corp, said China's carbon market development has been healthy over the past two years, aligning with benchmarks like China's goal of peaking carbon emissions by 2030.

The government, Pan said, has been actively integrating carbon market development with the great endeavor of building a new power system with new energy as the main pillar, facilitating increased investment in renewable and clean energy.

While some believe China's carbon emissions trading scheme, which is the world's largest of its kind, has remained relatively quiet since its soft launch in 2021, Pan sought to offer a proper perspective, saying the establishment of a carbon market is a gradual process which cannot be rushed or hurried, considering the country's substantial emissions trading volume.

"The carbon market holds immense market opportunities and potential for relevant industries' transformation to a green and low-carbon development model, and it is necessary for leading enterprises in the market like SPIC to provide solid guidance and support for future market participants for long-term healthy development," Pan said.

"The fundamental purpose of the carbon market is not to profit from the financial market but rather to gradually reduce emissions by better utilizing the policy instrument of quotas, thus encouraging companies to willingly adjust their development model, and apply high energy efficiency and low-carbon technologies. Leading enterprises can serve as examples to guide future participants in carrying out their responsibilities effectively."

SPIC is ready to support various industries in achieving green and low-carbon transformations through carbon footprint management and related businesses, providing professional support for the sustainable development of enterprises, he said.

Liu Yang, expert partner at global consultancy Bain & Co, said more efforts are expected to guide companies from various sectors to voluntarily participate in the carbon market as well as in investments in the market so as to scale up climate action globally.

China aims to relaunch the China Certified Emission Reduction program this year sooner than later. The program is a voluntary mechanism for participants to earn carbon credits to trade. Basic infrastructure required to launch the program is already largely in place, the Ministry of Ecology and Environment said recently.

Liu Youbin, spokesman of the ministry, said at a news conference in June that the ministry will strive to launch the CCER program-linked trading market this year and maintain market integrity, fairness and transparency.

Under the CCER program, companies can voluntarily earn carbon credits by taking action to reduce carbon emissions, such as by promoting renewable energy generation and afforestation.

Launched by the National Development and Reform Commission in 2015, the mechanism was suspended in 2017.

China's carbon market is expected to further expand beyond power generation, into seven new, harder-to-abate sectors, including petrochemicals, chemicals, building materials, steel and nonferrous sectors, in order to reach the national goals of peaking emissions by 2030 and reaching carbon neutrality by 2060.