China to launch world’s biggest carbon market in 2016
China is planning to roll out its national market in 2016 and the government is close to finalising rules for what will be the biggest emissions trading scheme in the world, according to officials on Sunday
China is planning to roll out its national market in 2016 and the government is close to finalising rules for what will be the biggest emissions trading scheme in the world, according to officials on Sunday.
China is the world’s biggest emitter of carbon emissions, accounting for nearly 30 per cent of global greenhouse gas (GHG) emissions and introducing the carbon scheme is designed to slow the rapid growth in emissions.
The Chinese government has pledged to reduce the amount of carbon it emits per unit of GDP to 40-45 per cent below 2005 levels by 2020.
Seven regional pilot markets have already been implemented in a bid to develop experience and expertise ahead of a nationwide scheme.
At a conference in Beijing (pictured above right) on Sunday, Sun Cuihua, a senior climate official with the National Development and Reform Commission (NDRC), said: “We will send over the national market regulations to the State Council for approval by the end of the year.”
The nationwide market will start in 2016 with some provinces permitted to start later if they lack the technical infrastructure to participate initially.
Estimates suggest that the Chinese scheme will dwarf the European Union’s emissions trading system, which is currently the world’s biggest.
Kazakhstan and New Zealand already operate similar markets Asia and the Pacific with South Korea due to launch a national scheme in January 2015
Indonesia, Thailand and Vietnam are also developing plans to launch markets of their own.
The Chinese market will cap carbon dioxide emissions from sources such as electricity generators and manufacturers with those that emit above their cap forced to buy permits.
