2013 Reports

Red China Going Green: The Emergence and Current Development of Carbon Emissions Trading in the World's Largest Carbon Emitter

Wang, Xiaotang

This paper focuses on one of China’s efforts to engage with climate change -- the establishment and development of carbon emissions trading schemes (ETSs) in the country. Section II examines the shift from command and control approaches to market mechanisms in China’s climate policy over the past two decades, which primed the domestic scene for the emergence of carbon emissions trading. Section III studies the seven regional ETS pilots due to
launch later this year, the success or failure of which will to a large extent determine the future of carbon markets in not only China, but most likely the rest of the world. Finally, section IV discusses the barriers these pilot programs need to overcome, and provides some suggestions for China to move forward and achieve its goal of establishing a nationwide scheme by 2015-16.