Connect with us

Hi, what are you looking for?


Cap And Trade

China To Launch World’s Largest Cap And Trade Program

Originally published on Climate Central.
By Bobby Magill

09_25_2015_Bobby_Magill_CC_China_2_720_478_s_c1_c_cChinese President Xi Jinping announced Friday that China will develop a carbon trading system as a way to reduce the country’s greenhouse gas emissions.

The announcement, made jointly with US President Barack Obama, comes as both countries  prepare to strike a global carbon emissions agreement at the Paris climate negotiations in December. The US and China are the top greenhouse gas emitting nations in the world.

China plans to launch the world’s largest emissions trading program in 2017, creating a carbon market for electric power generation, steel, cement and other industries producing most of the country’s greenhouse gas emissions. The program is meant to complement the Obama administration’s Clean Power Plan, which was finalized in August and aims to slash carbon emissions from electric power plants by 32 percent below 2005 levels by 2030.

“I issued our Clean Power Plan to reduce America’s carbon emissions,” Obama said at a news conference at the White House. “China will a begin market-based cap-and-trade system to limit emissions from some of its largest sectors.”

He said that the two nations are putting forth “our ambitious vision” on climate change so that both the US and China can lead the way for other nations to come to a climate agreement in Paris in December.

Xi also announced a “green dispatch approach” for its electric power supply as a strategy to meet the country’s goal of producing 20 percent of its electricity from renewables by 2030.

“China’s ‘green dispatch’ system will prioritize power generation from renewable resources, and establish guidelines to accept electricity first from the most efficient and lowest-polluting fossil fuel generators,” the presidents’ joint statement says.

That approach will reduce the need for high-carbon power, such as coal, and encourage the use of more solar and wind power, according to the statement. Finally, China announced that it will use $3.1 billion to help developing countries combat climate change.

“Today, China — one of the largest providers of public financing for infrastructure worldwide — agreed to work towards strictly controlling public investment flowing into projects with high pollution and carbon emissions both domestically and internationally,” the statement said.

In June, China submitted its pledge to the United Nations to peak its greenhouse gas emissions by 2030, a goal laid out in a bilateral agreement in 2014. The pledge also said China plans to reduce its emissions intensity by up to 65 percent, doubling its current wind and nearly quadrupling its solar power generating capacity by 2020.

Andrew Steer, president of the World Resources Institute, a global natural resources think tank, said in a statement that Friday’s announcement lays a cornerstone for a global climate agreement in Paris in December.

“These two countries have found common ground on the three most critical elements of a strong agreement in Paris: A long-term goal for the transition to a low-carbon economy this century, creation of a process that builds greater ambition over time, and a transparent system that will instill confidence that countries will follow through on their commitments,” Steer said.

China’s announcement displeased some environmental groups, however.

“The reported move by China to enact a cap-and-trade program for carbon emissions will not begin to solve our climate crisis,” Food and Water Watch Executive Director Wenonah Hauter said in a statement. “Through a system of ‘credits’ and dubious and unverifiable offsets, cap-and-trade programs essentially create a commodity out of pollution, allowing for financial corporations to profit from polluting industries.”

Image: Andy Enero/flickr

Reprinted with permission.

Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.


You May Also Like

Clean Transport

In Part 1, I gave readers some very quick historical background on how the situation in Xinjiang came to be, and what the UN...


Since 2017, there have been many allegations of human rights abuses in what China calls the Xinjiang Uyghur Autonomous Region, known by dissidents as...


When it comes to electric vehicles and the Inflation Reduction Act of 2022, almost all of the discussion has been around the consumer tax...


Plugin vehicles continue to be all the rage in the Chinese auto market. Plugins stayed in the fast lane in August, growing 92% year...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.