Spotlight Activity: China Starts a New Emission Trading System
On May 18, the National Conference on Ecological and Environmental Protection was held in Beijing. Xi Jinping, the president of the People’s Republic of China restressed the importance of the development of the market-oriented carbon trading system.
Under the guidance of Xi Jinping, China will focus on the construction of a new emission trading policy and regulation system, that includes a carbon emissions monitoring report verification system, emissions quota management system units, carbon emissions data submission system, carbon emission rights registration system, and a trading and settlement system. Emission Trading systems reduce carbon emissions by assigning fixed amount of emissions to each participating company. If companies don’t use their quotas they can trade the balance to other companies that need to emit more. This new trading regulation system provides a platform for transparent market-based carbon credits trading.
The National Center for Climate Change Strategy has committed itself to strengthening related research to support the emission trading system. They are proposing several new studies including a study on how the market could play a decisive role in allocating emission permits; a study to identify a mechanism for managing risk within the new emission trading system; and a study on how to encourage synergies between the carbon emission trading mechanism and other environmental market mechanisms, such as China’s energy consumption and discharge rights systems that seek to set limits on the amount of energy that companies consume and discharge.
Status: Right Direction
Noticeable efforts were made in the development of a carbon emission trading system. However, whether the studies proposed by the National Center for Climate Change Strategy can be implemented effectively will help determine the effectiveness of the system.
Personal letters, emails and phone calls have the most influence and impact on decision makers and policy makers, so we encourage you to contact each policy-maker below directly with the following message:
“I congratulate the studies proposed by the National Center for Climate Change Strategies to improve the emission trading system. We are expecting to see those studies implemented soon.“
National Center for Climate Change Strategies
Address: Floor 18, Building B/ floor 6, Building C, Guoxi Building no. 11, Beilijia, Muxidi, Xicheng District, Beijing, China
Postal Code: 100038