(Bloomberg) -- China’s carbon prices rose to a record high as a looming compliance deadline for industries increased the prospect of a supply shortfall.
Emissions permits jumped 2.5% to 103.49 yuan ($14.62) a ton on Monday, the highest on record since the market launched in mid-2021, according to the National Carbon Trading Agency. They are up about 35% so far this year, following government announcements of more stringent regulations to stimulate the market.
Power utilities in China have until the end of the year to ensure they have enough allowances to cover their 2023 emissions. Companies receive a certain number of permits for free, but are required to purchase additional ones from the market if their emissions exceed the limit.
Stricter government rules introduced this year are expected to compel industrial polluters in the mandatory carbon market to accelerate their green shift. The new regulations include imposing obligations on steel, aluminum and cement producers next year and stricter emissions caps for fossil-fuel power generators.
China’s national carbon scheme currently covers about 2,200 power utilities that are responsible for roughly 4.5 billion tons a year of carbon dioxide emissions.
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