HSBC Global Research released a report stating that the European Union Emissions Trading System (ETS) has been in operation for three years. It is reported that China is considering tightening the quota supply of the national carbon market, and studying the inclusion of more industries in ETS. More details will be announced at the end of this month.
The bank believes that if carbon emission quotas are tightened, renewable energy and waste-to-energy conversion may benefit, and bullish ratings are given to Longyuan Power, China Power, and EB Environment. The target prices are HKD10, HKD4.3, and HKD4.4, respectively.