China has officially launched its national emissions trading scheme that will focus on the power generation sector before covering seven other sectors, including iron and steel.
The launch follows the rollout of seven pilot emissions trading schemes in major cities, such as Beijing and Shanghai, as well as the provinces of Guangdong and Hubei, since 2013.
Climate Actions and Energy Commissioner Miguel Arias Cañete said: “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.”
China’s system will help the country, the world’s biggest emitter of greenhouse gas emissions, to mitigate emissions cost-effectively.
The EU is supporting China to establish and develop its own system.
A new EU-China co-operation project on emissions trading started just a few weeks ago.
The €10m project runs over three years and will enhance EU-China co-operation on emissions trading and coincides with the launch of China’s nationwide carbon market.
The EU Emissions Trading System (ETS) uses a cap-and-trade system to reduce emissions from large power stations and industrial plants, amongst other areas, and covering nearly half of all EU greenhouse gas emissions.
