Online Newsletter
Sign up for our newsletter to receive the latest news and information from publics.bg

News

World news

19.12.2017 15:44

China launches national emissions trading system

AUTHOR: publics.bg

© pexels.com

China launches its national emissions trading system (ETS), according to a press release by the International Emissions Trading Association (IETA), congratulating the move by the Chinese government.

The National Development and Reform Commission announced that its ETS would cover just power and heat generators initially, which represent emissions of about 3 billion tonnes of CO2. There would be an initial verification period before the allocation is complete, which is expected to take 12 months.

“China joins a growing number of jurisdictions, such as California, the EU and South Korea, which are using market-based measures to cut climate emissions in a cost-effective and efficient way,” says Dirk Forrister, President and CEO of IETA. “China will have the world's largest carbon market, drawing lessons from these other markets to ensure that it works in harmony with other national policies”, he added.

In its latest ETS Status Report, the International Carbon Action Partnership estimated that around half of the world's GDP would be subject to an emissions trading market by the end of 2017.

“IETA and its members are keenly watching the development of the Chinese ETS, and support the move by the government to cut pollution in China and transition to a low-carbon economy,” says Min Li, IETA's China representative. “We stand ready to help businesses find opportunities and address challenges in this exciting new era for Chinese climate policy”, he commented.

In the end of October Reuters informed that a lack of reliable data and regulatory issues do not allow the roll-out of an ETS in China. According to the article, Beijing will struggle to launch its long-awaited nationwide carbon trading scheme, which is planned for this year.