Firms across China must start reporting carbon emissions
Thousands of firms across China must start reporting their greenhouse gas emissions, because the Government wants to build a nationwide emissions database ahead of launching a national carbon market.
The National Development and Reform Commission (NDRC), China’s top economic planning agency, said in a note that all companies that emitted more than 13,000 tonnes of carbon dioxide equivalent (CO2e) in 2010 must report their future annual emissions of all six major greenhouse gases. It is not known when this rule is going to be applied, but NDRC expect it to enter into force from 2015.
“The reporting is to tighten the control over major emitters, provide statistics for capping greenhouse gas emissions and launch a carbon trading scheme,” the note said.
The lack of credible emissions data is among the key challenges in building a national market, because imposing facility-level carbon caps is difficult if no one knows how much each power plant or factory emits.
Carbon trading is Beijing’s main policy to cut emissions. It is launching pilot carbon markets in seven cities and provinces to prepare for the launch of a national market later in the decade, between 2017 and 2020.
Precisely, a draft plan for a carbon market in Chongqing has been proposed recently, through which around 250 of its biggest companies be required to cut their carbon dioxide emissions by more than 4 percent per year starting in 2014.
The draft plan is expected to be launched next month. If the plan is approved, this would make Chongqing the first of the seven pilots to publish an emissions trajectory that requires actual emission cuts from this year.
China, the world’s biggest carbon emitter, aims to cut greenhouse gas emissions 40-45 percent from 2005 levels by 2020.