Environmental Engineering Reference
In-Depth Information
7
Carbon Emissions Trading
Jing Wang
Abstract
China's Carbon trading system is developed from her experience of participation
in CDM projects. Chinese government's resolution to reduce carbon emissions
serves as a key drive for China's carbon trading system. Pilot carbon trading
centers have been set up. Compulsory and voluntary carbon trading market will
compliment with each other at different stages. Chinese government should
optimize her carbon trading policies to incentive more stakeholders to partici-
pate in the carbon trading system.
Keywords
Emissions trading Tianjin Climate Exchange Carbon trading market
7.1
Introduction
Under the “common but differentiated responsibility” principle put forth in the United
Nations Framework Convention on Climate Change (UNFCCC), China is currently
not subject to mandatory greenhouse gas (GHG) reduction targets. However, the
Chinese government has published a series of policy documents to tackle climate
change since 2005 and clearly put forward “gradually establish a carbon emissions
trading market”. China's carbon market is mainly based on Clean Development
Mechanism (CDM) and supplemented by small-scale voluntary emission reduction
markets. By May 2013, it was estimated that Chinese CDM projects registered in the
United Nations will annually reduce emissions by about 589 million tCO
2
e, with 310
million tCO
2
e total issued Certified Emission Reductions (CERs), including 4,904
