China’s self-directed “Panda Standard” for carbon trading facilitated its first transaction yesterday, marking a new direction for the world’s largest emitter of carbon dioxide.
China has long been a supplier of carbon credits to the global market under the Kyoto Protocol, but thus far it has been rare for a developing nation to purchase carbon credits on exchanges.
With this new “Panda Standard”, China is entering the global carbon trade with its own exchange, which the nation ultimately hopes will help encourage the reduction of overall emissions. The “Panda Standard” aims to direct money from carbon polluters towards new agricultural and ecological projects in rural areas being affected by climate change.
The Chinese government has been targeting a reduction in the energy intensity of its economy as measured as tons of carbon dioxide emitted per unit of GDP.