NDRC to accelerate the development of a domestic carbon market in China over the second half of this year

China’s National Development and Reform Commission (NDRC) said that it will accelerate the development of a domestic carbon market over the second half of this year.

The commission has already compiled a document stating China’s mid- and long-term goals and measures to combat climate change in the first half of this year, submiting it to the United Nations Framework Convention on Climate Change.

Over the next six months, the NDRC will aim to create a plan to cut carbon emissions by 17%.

A roadmap for China’s low-carbon development will be set up as soon as possible and a nationwide carbon market targeting major industries will be launched in 2016, according to the commission.

One industry insider said investment in carbon reducing measures could reach 4.1 trillion yuan (US$660 billion) and predicted a bright outlook for carbon trading markets. China’s 12th five-year plan had included carbon reduction targets such as reducing carbon emissions 40%-45% on 2005 levels by 2020, with that number rising to 60%-65% by 2030. It also included related tasks such as increasing the percentage of non-fossil fuel energy consumption to 15% by 2020 and 20% by 2030 as well as environmental protection measures that looked to increase forest growing stock volume from 2005 levels to 1.3 billion cubic meters by 2020 and 4.3 billion cubic meters by 2030.

US President Barack Obama also unveiled a Clean Power Plan, which targets to reduce carbon emissions from power stations by 32% on 2005 levels by 2030.

The fact that China and the US have both pledged to reduce their carbon emissions will boost the development of carbon markets and carbon reduction industries around the world.