China unveiled new details on its plans to make power companies buy and trade rights to emit greenhouse gases.
Plans to create the "world's largest" carbon market have been in the works for years. With this system, companies must have permits to emit — and if they go over a government-set cap, they pay more. If they stay under, they can sell their unused allowance.
China's trading system will initially only cover companies that emit 26,000 tons or more of carbon per year.
An unnamed government official told Quartz the initial price per ton of emissions will likely be around $7.50. It's expected to gradually rise to $45 per ton.
It's unclear when trading will begin.
