The National Development and Reform Commission (NDRC) issued its Tentative Measures for the Administration of Voluntary Greenhouse Gases Emissions Reduction Trading on 13 June. The trading measures took effect the same day.
China plans to launch various greenhouse gas emission trading pilot schemes in selected regions (Beijing, Tianjin, Shanghai, Chongqing, Guangdong, Hubei and Shenzhen) in 2013, which should be followed by the implementation of a nationwide cap-and-trade regime after 2015. The trading measures only apply to trading of voluntary emissions reductions. They will not directly regulate trading under China’s pilot or national trading schemes unless the eligibility of those schemes permits this.
The introduction of these market-based mechanisms are designed to assist China in achieving its emission reduction goal of reducing the carbon intensity of its economy by GDP unit by 40-45% by 2020. The trading measures are an important step in establishing the regulatory framework in which these trading activities could take place. The specific implementation of the various recordal procedures, the establishment of a national registry and the linkage of this registry with the exchanges therefore will be followed with interest as a potential indicator of how China’s greenhouse gas trading platform is taking shape.
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