Environmental Engineering Reference
In-Depth Information
without considering as a whole the processes of assessment and allocation as well as
the choice of standards, the demand for allowances, registration platforms, the
scope of regional pilots, and relevant laws and regulations. In order to implement
the government's general goal of establishing the carbon market during the 12th
Five-Year Plan period, the following recommendations are proposed, taking into
account international experiences and China's conditions:
(a) The government should hasten the issuance of MRV methodologies. The
NDRC - the competent department for carbon market in China, has organized
relevant institution to research the guidelines and reporting format for GHG
accounting methods of major industries and enterprises in the initial stage of the
“12th Five-Year Plan” period, mainly covering electricity, iron and steel, non-
ferrous metals, building materials (cement and glass), chemical industry and
aviation, which lays the foundation for carbon emission trading. It is
recommended that competent department officially issue unified MRV
methodologies nationwide as soon as possible combining the situation and
experience after official launch of trading pilot in accordance with international
practices for the purpose of providing powerful basis for regional industries and
enterprises to account carbon emissions and emission reductions and ensuring
comparability between results of measurement in different enterprises and
different regions. This will also help establish cross-industrial and cross-regional
trading and lay the groundwork for establishing a nationally unified carbon
market in the future.
(b) The government should hasten the establishment of a unified domestic registry for
emissions reductions. It is recommended that China accelerate the establishment
of a unified registry of domestic emissions-reduction projects as well as a unified
issuance of emission reductions and a unified transfer of ownership for each
carbon transaction. This will ensure distinct ownership of rights and reliable
information; ease the verification process for transactions among third parties,
the buyer and the seller; strengthen the transparency of the market, and lay the
foundation for financial innovation based on standardized carbon credits.
(c) Actively promote the preparation of carbon inventories and set up emissions
databases. It is recommended that the government promote local work on
carbon inventories by providing financial support and establishing a complete
carbon emissions database to provide scientific and reliable data for setting caps
and allocating allowances as well as the promotion of energy saving and
emission reduction.
(d) Further improve relevant legal regulations for the carbon market. It is
recommended that the government actively carry out the relevant legislative
work to tackle climate change and establish the carbon market, issue special
carbon trading laws and regulations as soon as possible, determine the legal
position of trading and give guidance for allowance allocation, trading rules,
systems of rewards and punishments and so on for pilot regions. The purpose is
to encourage creativity in the pilot regions while also overseeing the overall
national arrangement and paving the way for the future transition to a national
trading market.
