China likely to allow banking of pilot CO2 permits, reduce free allocation

China is likely to let allowances from the pilot carbon markets be banked to the national emissions trading system, but will compensate by reduced allocation levels.

Chinese carbon traders are awaiting clarity on what will happen to the millions of surplus allowances from the seven pilot markets when the national ETS launches next year.

Ruling them ineligible in the national market would likely see pilot prices drop to near zero for the next 15 months.

Read the full story here: Carbon Pulse