China Loosens Carbon Rules to Ensure Winter Power Demand Is Met

(Bloomberg) — China has loosened the rules governing its carbon market after prices rose to a record, to make it easier for power generators to meet rising winter demand. 

Coal-fired power plants, which are due to buy carbon permits to meet emissions targets by the end of the year, were informed by the environment ministry that they’ll be allowed to borrow more from future allowances, according to people familiar with the matter. The plan will swell supply and help eliminate the threat of electricity shortages during the colder weather, said the people, who requested anonymity when discussing a private notice from the ministry.