Nationwide Carbon Market to Regulate Almost Half of the Country’s Total Emissions
The long awaited nationwide carbon market will cover around 10,000 firms and will regulate almost half of the countries total emissions once it will be launched in 2017. Jiang Zholi the vice head for the climate office of the State planning agency stated that the carbon market in China will become the world’s largest and its targets will be higher that those set by the State to ensure that it will have sufficient effect.
As the carbon market begins in 2017, and covers 31 provinces, six industrial sectors and 15 sub industries will be involved in 4 billion tons of annual carbon emissions during its launch that is half of the country’s total. President Xi Jinping pledged during his visit to the United States that China will roll out a nationwide carbon trading scheme in 2017, built around the seven regional pilot markets that were first introduced in 2013.suggestions were made that the market will begin in a more ambitious way that expected as previous estimates from market designers are suggesting that it will regulate 3 to 4 billion tons of carbon dioxide a year by the end of the first phase in 2020.
China will also include a promotion of market mechanisms in pledges to combat climate change, since it remains controversial and is unlikely to include in a final agreement. As far as market mechanisms are concerned they think that the carbon market can play an important role in achieving actions that will mitigate and adopt the impact of climate change. But whether there will be inclusion in the text in the Paris agreement, they think that it won’t be a priority as there is a lot of different views on whether they should rely on a non market mechanisms but that difference should stand in the way of having a successful outcome in the climate change negotiations.