The Global Climate Change Conference was held on November 6 in Bonn, Germany. As the world's second-largest economy, China attracts global concern with its every move. Just a few days before the conference, the Financial Times website, a well-known British media, reported that it is becoming a general belief that China is preparing to launch its nationwide carbon trading system.
According to the Financial Times, Chinese state leaders stated two years ago said that Beijing will launch a carbon trading system in 2017. In terms of scale, China's carbon trading system will most certainly become the World's largest, dwarfing that of the EU. With this year coming to an end, government officials, industry experts and researchers in Chinese think tanks also stated that Beijing may announce the launch of its carbon trading system during the two-week long Bonn Climate Change Conference, which opens on November 6 local time.
The report quoted Li Shuo, director of Greenpeace's East Asia Division, as saying: "We expect the launch of a national carbon trading system will happen simultaneously with the Bonn Climate Change Conference." This trading system will allow the most polluting enterprises to by carbon credits from those with less emission. If this system succeeds, it will strengthen China's leadership in the global response to climate change. China has pledged to lower the growth rate of its carbon emissions under the upper limit by about 2030 through the use of cleaner energy.
In recent weeks, governments at the grassroots level in Beijing have shown greater intent to crack down heavily polluting enterprises with unprecedented severity and ordered some of the biggest steel and coal producers to cut their production nearly in half in this winter.
Earlier, during the International Low Carbon City Forum held on September 8 in Shenzhen, Liu Yanhua, a counselor to the State Council and director of the China National Expert Committee on Climate Change, also disclosed that China will build a nationwide carbon trading market by the end of this year in an effort to attract more enterprises and institutions to actively participate in the carbon trade and promote China's energy-saving, emission reduction and green low-carbon development. He said that China faces enormous pressure in respect of energy-saving and emission reduction as its carbon emissions will reach 10 billion tons by 2020, and it aims to build a nationwide carbon trading market before the end of this year to further promote its energy-saving, emission reduction efforts and green low-carbon development. Specific operations of this system will run under the coordination and management of the National Development and Reform Commission and proper arrangement need to be made to integrate the carbon trading markets already established in many cities across the country.
Liu Yanhua stressed that after the establishment of the national carbon market by the end of this year, China will be able to coordinate the markets across the country, promote the participation of more enterprises and institutions, the increase of the market attractiveness and beneficial changes in market structure, so as to lower the cost of enterprises and promote energy conservation, emission reduction, development of new energy technologies. In the future, the country will also formulate policies and regulations for unified supervision and standardization of carbon market development.