This article discusses China’s various emissions trading and cap pilot projects across China. China is pushing forward with plans to introduce carbon trading experiments in various cities and provinces, as a testing process that will prefigure a China-wide system. This is a very important development to watch in terms of its impact globally and the extent of Chinese trend setting, along with issues such as policy synchronization and the impact on climate mitigation negotiations.
China’s decision to launch a group of city and provincial-level carbon-trading trials is widely considered to be preparation for an absolute cap on emissions. The scheme, led by the National Development and Reform Commission, China’s top economic planner, will see pilots established in five cities and two provinces: the cities of Beijing, Tianjin, Shanghai, Chongqing and Shenzhen and the provinces of Hubei and Guangdong
A good foundation for these trials is already in place: much experience has been gained from the operation of earlier environmental exchanges in Beijing, Shanghai and Tianjin. But even the best laid plans can go awry, and so we make the following suggestions: