The official launch of the Chinese carbon market – the biggest in a world – announced by Beijing on Tuesday 19 December has been welcomed by the European Union as a beacon of hope in global efforts to combat climate change, following the defection of the Trump administration.
“As the US government turns its back on the fight against climate change, China, the EU and many others are forging ahead with robust climate policies and measures. This announcement sends a very strong signal: the world is changing with new, broad climate leadership. With both the EU and China committed to emissions trading, two major international players are championing carbon markets to meet their commitments under the Paris Agreement and curb emissions cost-effectively”, stated European Climate Action and Energy Commissioner Miguel Arias Cañete in a press release.
The EU has invested €10 million in a cooperation project which has just been launched to link the EU emissions trading scheme (ETS) and the Chinese carbon market (see EUROPE 11584).
“The carbon market will help the world’s biggest emitter to contribute to the Paris Agreement”, said German MEP Jo Leinen (S&D).
The Chinese system will be implemented in stages. In its initial phase, it will include only the energy sector, covering around 3.3 Gt emissions which represents around a third of China’s national emissions. Further sectors will be included between now and 2020.
“The launch of the Chinese carbon market shows that there is increased commitment around the world to price pollution and direct investments into clean technologies. Transparency and public participation will be key to making the Chinese scheme a success in the coming years”, commented Femke de Jong, EU Policy Director at Carbon Market Watch.
The NGO states that a number of uncertainties remain around the scheme, including concerns over data quality, and measuring, verification and reporting (MRV) systems in many of the Chinese provinces. In addition, it argues, most carbon prices – including in the EU ETS – are too low to drive the transition to a zero-carbon economy. Carbon Market Watch believes there can be no justification for free allowances. (Original version in French by Aminata Niang)