This week, both Beijing, China’s national capital, and Shanghai its leading financial city, launched pilot emissions trading systems. These pilots will run for two years, until the end of 2015. They join the city of Shenzhen, on the Hong Kong border, which launched a pilot carbon market in June this year. Guangdong, Hubei, Tianjin and Chongqing are also planning to launch pilot emissions trading systems in the near future.
In a press release the International Emissions Trading Association (IETA) week welcomes the launch of the pilot emissions trading systems in Shanghai and Beijing. IETA urges governments around the world to continue developing market-based mechanisms to address climate change.
Dirk Forrister, president and CEO of IETA, said: “It is an important signal that China’s two leading cities are choosing carbon markets to rein in greenhouse gas emissions. Emissions trading is the most cost-effective way to lower greenhouse gas emissions, and China is poised to create the world’s largest carbon market after 2015. We look forward to working with governments, businesses, and non-governmental organizations in China to help further develop these pilot emissions trading systems.’
IETA has an initiative to support emissions trading in China: the “Business Partnership for Market Readiness” (B-PMR). The B-PMR brings experts from IETA’s member companies to meet with local businesses and policymakers in China to support the development of good business practices in the operation of carbon markets. In 2013, Shenzhen, Guangdong, and Shanghai each hosted a B-PMR ‘Mission’ with +30 IETA member companies and +230 Chinese businesses engaging with each other to prepare for participation in these new emissions markets.
Jeff Swartz, IETA’s Director for International Policy director, said: “IETA wants to support and help businesses in China prepare to succeed in these new carbon markets. IETA’s B-PMR is a trusted resource for Chinese policymakers and businesses, and we will continue to grow this effort in 2014.”