China could have national ETS by 2018

A national carbon market could be in place in China by 2018, according to the National Development and Reform Commission. The commission is currently piloting schemes in Shenzhen, Shanghai, Beijing, Guangdong, Tianjin, Hubei and Chongqing. At a recent World Bank conference, NDRC official Wang Shu told delegates that the national emissions trading scheme (ETS) would be based on the outcomes and experiences of the seven pilot regions. The pilot schemes are due to come to an end in 2016.

It is not yet clear whether a national carbon market in China would impose an absolute cap on carbon emissions, or if it would impose a limit that would stall the growth in emissions. The majority of the regional pilot schemes work on a cap and trade system, but there have been some problems. In Tianjin, it has just been announced that energy producers and industrial emitters (including cement companies) will be given an extra six weeks to comply with the scheme. The 114 companies involved were supposed to hand over permits to the government for their 2013 emissions on 31 May, but that has now been pushed back to 10 July, meaning the region will no longer be the first in the country to act (presuming that the other five other pilot regions hand over their permits on time). The delay is reportedly caused by a late start in verifying emissions data. Meanwhile, the permit price has declined to around US$4.50 as demand remains low. In other regions, there are reports of companies complaining that the rules of the scheme are unfair and, Reuters reports, in Shanghai companies are reportedly finding it hard to find companies willing to sell permits.

Edited from various sources by Katherine Guenioui

Read the article online at: https://www.worldcement.com/asia-pacific-rim/30052014/china_national_ets_by_2018_275/