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LONDON, 19 December – IETA welcomes the Chinese government’s launch of its national emissions trading system (ETS) – capping off a busy year for carbon market developments around the world.
The National Development and Reform Commission announced today that its ETS would cover just power and heat generators initially, which represent emissions of about 3 billion tonnes of CO2. There would be an initial verification period before the allocation is complete, which is expected to take 12 months.
“China joins a growing number of jurisdictions, such as California, the EU and South Korea, which are using market-based measures to cut climate emissions in a cost-effective and efficient way,” says Dirk Forrister, President and CEO of IETA. “China will have the world’s largest carbon market, drawing lessons from these other markets to ensure that it works in harmony with other national policies. We commend the Chinese government for taking these steps to realise its long-term vision.”
In its latest ETS Status Report, the International Carbon Action Partnership estimated that around half of the world’s GDP would be subject to an emissions trading market by the end of 2017.
“IETA and its members are keenly watching the development of the Chinese ETS, and support the move by the government to cut pollution in China and transition to a low-carbon economy,” says Min Li, IETA’s China representative. “We stand ready to help businesses find opportunities and address challenges in this exciting new era for Chinese climate policy.”