The evolution of China's emission trading mechanisms: From international offset market to domestic Emission Trading Scheme
Feng Ba,Paul R Thiers,Yonggong Liu
Environment and Planning C:Politics and Space,Vol.36,No.7,2018
Abstract: With the decline of the international market under the Clean Development Mechanism,China isestablishing a national Emission Trading Scheme by setting up emission cap and trade rules forhigh emission industries in seven pilot areas.The shift from the international to domestic marketand from an offset program to a true cap and trade mechanism requires several significantchanges.This paper reviews the development and evolution of China's carbon trading marketpolicy instruments.We find that there are substantial changes in both structure and policy.First,Emission Trading Scheme is a broad cap-and-trade mechanism with many new stakeholdersadded to those already involved in China's Clean Development Mechanism.Second,the adminis-trative structure is decentralized compared to that of the Clean Development Mechanism.Third,while the Emission Trading Scheme is best thought of as a new policy,China's experiencewith the Clean Development Mechanism influences that policy.A large number of CleanDevelopment Mechanism projects are being converted into offsets for the national EmissionTrading Scheme market,and many institutional stakeholders that emerged during the CleanDevelopment Mechanism are now involved in the Emission Trading Scheme.The combination ofnew policies and stakeholders,a decentralization of structure and the conversion of Clean Development Mechanism projects raise questions regarding the integrity of the cap and the enforce-ment of compliance as the Emission Trading Scheme is expanded into a nationwide system.
Keywords:China,carbon emission policy,Clean Development Mechanism,Emission Trading Scheme,capand trade
To link to this article:https://doi.org/10.1177/2399654417751928