Jun 18, 2013 - 12:00pm
The first of the seven planned Chinese pilot emission trading schemes, in Shenzhen, is set to start operation in mid-June 2013. While China has been indirectly pricing carbon for years, this scheme will be its first mandatory carbon market.
Pilot emission trading schemes are planned to start this year in Beijing, Chongqing, Guangdong, Hubei, Shanghai, Shenzhen and Tianjin.
These pilots are expected to cover around 700 million tonnes of CO2-e by 2014, which is a fraction of China’s total emissions, yet are still very significant. By comparison, Australia’s carbon price covers around 380 million tonnes, California’s 165 million tonnes and Europe’s 2.1 billion tonnes. (See Table 2 for comparison with Australia.) China plans to implement a national scheme around 2016 based on the lessons learned from the pilot schemes.
For full details, download the Research Brief below.