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China orders greenhouse gas caps ahead of local carbon market pilots

Date
16 January 2012
China orders greenhouse gas caps ahead of local carbon market pilots

BEIJING: The Government of China has instructed seven Chinese provinces and cities to set limits on their greenhouse gas emissions, in preparation for the launch of local carbon market pilots.

The National Development and Reform Commission issued a note asking that the cities of Beijing, Chongqing, Shanghai, Shenzhen and Tianjin, as well as the provinces of Guangdong and Hubei, establish emissions control targets, along with dedicated funding and allocation proposals.

The Government's demands have been made in preparation for the carbon market pilots, which will be launched in the seven locations in a bid to encourage nationwide carbon emission reductions

Leading the way is Guangdong, which although is China’s largest greenhouse gas emitting province, has already had its proposal approved by the State Council. The province has committed to boosting clean energy to 20% of total energy consumption, and cutting carbon intensity by 19.5%.

It is hoped the remaining cities and provinces will pledge similar caps to Guangdong. 

China itself has promised to cut carbon intensity by 17% between 2011 and 2015, and there are more than 100 regions across the country that are currently looking to establish emissions trading platforms. 

Changhua Wu, Greater China Director, The Climate Group comments on the Government’s requirements: “The Climate Group totally supports the Chinese Government’s efforts in piloting its domestic carbon trading scheme at local level. We believe that the pilots’ success and experience will lay a solid foundation to develop a nationwide scheme in the near future, which is expected to play its due role in de-carbonizing China’s rapid urbanization and re-industrialization process. It fits perfectly with our global mission of driving the Clean Revolution.”

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