4 August 2011 | Luca Del Buono
Carbon, Legislation, Asia

 

Industries such as construction and transportation manufacturing will be affected by the potential carbon emissions cap.

China is reported to be considering plans to cap carbon emission from steel, cement and other industries in order to make way for carbon credit trading.

Comments made by Sun Zhen, a climate official at the National Development and Reform Commission, to the China Daily on Thursday (04/08/2011) have added to recent indications that the Chinese government is actively exploring caps on some high polluting sectors, allowing businesses to trade on the right to emit carbon dioxide.

"Throughout the country, we have adopted a plan for reducing releases of carbon,” Sun told the China Daily. “But when it comes to actually reducing the emissions of certain businesses, that calls for limiting the absolute quantity of emissions. Setting limits on the absolute amounts of carbon that can be emitted will make it possible to carry out trades of emissions credits,” Sun said.

China is the world's largest carbon emitter by nation. A cap-and-trade system would be a vital part of the nation's goal to cut carbon by up to 45 per cent by 2020 in comparison with reported levels from 2005.

The Chinese government has been investigating how industry emission targets could be implemented in its electricity sector, which relies heavily on coal. They are anxious to use "market mechanisms" to avoid a repetition of 2010’s events, when many provinces were forced to shut down industrial capacity levels as part of a final attempt to meet energy intensity targets.

A comprehensive plan for reducing emissions from 2011-2015 is in the process of being approved and implemented by China's cabinet, the State Council, and is expected to be published later this year.

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