China’s carbon accounting sector experiences a significant boost as companies seek advanced methodologies to assess and strategically reduce greenhouse gas emissions, anticipating a billion-dollar market.
Challenges in Carbon Accounting
Despite active efforts by Chinese companies in adopting carbon reduction measures, the lack of standardized carbon accounting methods poses a challenge. The diverse industries, categories, processes, and modalities contribute to the complexity of establishing a unified carbon emissions measurement system.
Global Implications and Carbon Market Dynamics
Global trade considerations, especially after the European Union’s introduction of the Carbon Border Adjustment Mechanism, intensify the need for accurate carbon accounting. The mechanism, a tariff on carbon-intensive products, is set to come into effect in 2026, prompting businesses to focus on transparent emissions reporting.
China’s Dominance in Carbon Allowance Trading
China proudly hosts the world’s largest carbon allowance trading market, with cumulative transactions reaching 423 million metric tons, totaling 23.57 billion yuan ($3.3 billion) as of Nov 30. Experts anticipate the carbon accounting market’s size to reach tens of billions of yuan, driven by the growth in carbon allowance trading volume.
Technological Innovations and Policy Support
Chinese companies leverage advanced technology to create carbon accounting and management systems, aiming for user engagement and carbon reduction goals. Policy support is evident with the 2022 action plan to accelerate the establishment of a unified carbon emissions accounting system.
As China navigates the challenges of establishing uniform carbon accounting standards, the industry’s potential remains vast. With policy backing and a growing market, the sector is poised for further development in contributing to global environmental goals.
Source：chinadaily.com.cn
