A little more flesh on the bones of China’s plans to establish carbon trading markets. At the Carbon Expo in Barcelona, where China was announced as one of eight countries to be getting $350,000 initial grants from the World Bank towards implementing market-based initiatives to fight climate change, Wang Shu of the National Development Reform Commission’s Climate Change office said:
“The Government of China will, according to the requirements of the Outline of the 12th Five-Year Plan, gradually establish a market system for carbon emissions trading to promote the achievement of its carbon intensity reduction objective….The initial plan is to establish carbon emissions trading schemes in some pilot regions, and try to establish a unified national system in 2015.”
The pilots will be carried out in Beijing, Chongqing, Shanghai, Tianjin, Hubei and Guangdong. Only Chinese companies are likely to be allowed to trade during their initial phase. Central government still needs to set its overall carbon discharge reduction targets, which are a prerequisite for establishing the national carbon-trading market. The global carbon market was valued at $124 billion last year.