Launch of China Carbon Market Research Report 2015
The Environomist China Carbon Market Research Report 2015 was launched at the United Nations Development Programme (UNDP) compound.
The report has thoroughly examined all official documents published in 2014 at both the central and local government level. In addition, a nation-wide market survey has been conducted to collect first-hand data from China’s Emission Trading Scheme regulated entities and financial institutions on their level of capacity and expectations for the scheme.
While the European Union (EU) ETS remains the world’s largest policy instrument for carbon emission control, China has the potential to become the world’s largest in the future. Currently with most of China’s seven designated ETS pilots in operation as of 2014 in Guangzhou, Hubei, Shanghai, Tianjin, Shenzhen, Beijing, and Chongqing, China has the second largest carbon market in the world. It will almost certainly be the largest when China launches its national ETS in 2016. The total number of installations – in just these seven pilots, is almost double the number in single countries such as the UK for the mandatory EU scheme.
Hannah Ryder, Head of Policy and Partnerships Group in UNDP China said “China’s successful implementation of a national ETS will be game-changing for the world, both in providing a market-based solution to climate change, but also in providing a model that other developing countries can follow”.
The report describes lessons learnt to date from China’s experience in implementing the ETS in the seven pilots across China. Richard Mao, Team Leader of Working Group, described the report’s findings and the ETS’s potential to achieve real emissions reduction. The 2nd in an annual series, this report analysed market survey results, the roles of financial institutions and the carbon risks of financial institutions.
Zhang Xin, Deputy Director of the CDM Management Center at National Center for Climate Change Strategy and International Cooperation, remarked “2014 and 2015 are critical years for development of the National ETS” and pointed out the challenges.