Supply security is a key concern for Beijing
China’s carbon trading offers little gas-to-power help
Generation from the cleanest fossil fuel looks set to struggle to expand in China despite the start of carbon trading
China’s much-delayed carbon market went live at the start of February, a decade after the idea was first floated and initially covering only the power sector. The scheme includes some 2,225 coal and gas-fired generation facilities, responsible for more than 40pc of China’s carbon emissions, and is not expected to begin trading until June. The gas industry had hoped the start of carbon trading would boost the competitiveness of gas-to-power by raising the cost of coal generation to more than gas, which is one of the most expensive forms of electricity production in China. [Gas-fired power plants] are largely still relegated to filling peak demand requirements rather than operating basel
Also in this section
6 February 2026
The long close relationship between key supplier Qatar and pivotal buyer Japan becomes even deeper following new landmark deal
6 February 2026
Partnerships across the LNG value chain have evolved over time, growing in both complexity and importance, according to panellists at LNG2026
6 February 2026
Nigeria's mega-refinery is still trying to solve many challenges, all while its owner talks up expansion
5 February 2026
While broadly supportive of EU efforts to tackle methane emissions, representatives of the gas industry warn it could deter supply contracting if timelines and compliance requirements are not made more pragmatic
