Effectiveness of pilot carbon emissions trading systems in China

Deng, Zhe; Li, Dongya; Pang, Tao; Duan, Maosheng

doi:10.1080/14693062.2018.1438245

Cited by 65 publications

(23 citation statements)

References 26 publications

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“…Since 2013, Beijing, Shanghai, Tianjin, Chongqing, Guangdong, Hubei and Shenzhen have started pilot emission trading schemes (ETS), which have become a key topic of interest for many national and international researchers (Luo, Qin, & Wen, 2016;Zheng, Liu, & Wang, 2015). Whereas some researchers focus more on the prospects of the pilot schemes (Zhang, Karplus, Cassisa, & Zhang, 2014), the ETS schemes in general (Duan, Pang, & Zhang, 2014;Qi & Wang, 2013) and the experiences and lessons learnt in these seven Chinese ETS pilots (Jotzo & Löschel, 2014;Deng, Li, Pang, & Duan, 2018), others pay more attention to certain specific aspects of the ETS schemes, such as the allocation of emission allowances (Pang & Duan, 2016;Ye, Jiang, Miao, & Xie, 2017) or the cost of trading (Duan & Pang, 2013;Heindl, 2012) or alternatively a certain ETS pilot, such as Shanghai (Wu, Qian, & Li, 2014), Shenzhen (Jiang, Ye, & Ma, 2014;Jiang, Ye, Ma, & Miao, 2016), Hubei (Qi, Wang, & Zhang, 2014), or Guangdong and Shenzhen in a comparative study (Wang, Luo, Xie, Luo, & Zhao, 2016). In recent years, China's forthcoming national carbon emissions trading system has become the centre of attention in the academic world, covering topics such as the overview and prospects of the national carbon emissions trading market (Jiang, Xie, Ye, Shen, & Chen, 2016), the transition from the ETS pilots to the national carbon emissions trading market (X. , the challenges and suggestions to overcome when launching the national carbon emissions trading market (Lo, 2016;Liu & Song, 2017;Qi & Cheng, 2018).…”

Section: Introductionmentioning

confidence: 99%

Key challenges for the establishment of the monitoring, reporting and verification (MRV) system in China’s national carbon emissions trading market

Tang

Guo²,

Oudenes³

et al. 2018

Climate Policy

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An effective system for monitoring, reporting and verification (MRV) is the cornerstone of any carbon emissions trading market. This paper analyses existing MRV frameworks in China, including under the seven emission trading pilot schemes, to identify four key challenges for the establishment of an effective MRV system for China's forthcoming national carbon emissions trading market: (1) ambiguity in the legal status of relevant policies and regulations, (2) unclear requirements for the content of monitoring plans, (3) lack of consistency and harmonization in accounting and reporting guidelines, and (4) lack of information technology (IT). The paper then considers the experiences and lessons of the European Union Emissions Trading Scheme (EU-ETS) and the MRV systems in the seven carbon emissions trading pilots, and puts forward suggestions for tackling the four key challenges. Key policy insights. It is crucial to create general framework legislation that is legally binding and of a sufficiently high legal status to facilitate legal enforcement of the MRV requirements and increase the compliance levels of MRV activities.. Clear rules on the content of the monitoring plan and development of templates would harmonize approaches across regions and between reporting entities.. It is important for implementing regulations to include specific requirements on monitoring and reporting in order to ensure compliance with the main monitoring and reporting principles.. Use of IT should gradually evolve towards an integrated system that covers the whole compliance cycle, including monitoring plans, emission reports, verification and verification management, as well as multiple stakeholder access.

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Section: Introductionmentioning

confidence: 99%

Key challenges for the establishment of the monitoring, reporting and verification (MRV) system in China’s national carbon emissions trading market

Tang

Guo²,

Oudenes³

et al. 2018

Climate Policy

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show abstract

“…They argue that the support of national governments and free allowance of permits promoted the political acceptance of pilot ETS. Deng et al (2018) show that the pilot MRV and compliance rules have not yet been fully implemented at an early state because of the lack of force of the regulations and policy awareness within firms.…”

Section: Ets and Related Measuresmentioning

confidence: 99%

“…Deng et al . (2018) show that the pilot MRV and compliance rules have not yet been fully implemented at an early state because of the lack of force of the regulations and policy awareness within firms.…”

Section: Market Policy Instrumentmentioning

confidence: 99%

Energy‐Related Environmental Policy and Its Impacts on Energy Use in Asia

Arimura

Sugino

2020

Asian Economic Policy Review

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Economic growth in Asia has increased in the past three decades and has heightened energy demand, resulting in rising greenhouse gas emissions and severe air pollution. To tackle these issues, fuel switching and the deployment of renewables are essential. In the present paper, we discuss the environmental regulations, mainly carbon pricing, implemented in Asia and discuss their achievements. Empirical studies using microdata have shown that carbon pricing in Asia can reduce carbon emissions by promoting energy efficiency. At the macro level, we observe some evidence of fuel switching from coal to natural gas among major emitters. However, more carbon pricing is necessary in Asia if we aim for the decarbonization of the economy.

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“…Yu and Lo found that regulatory standards and official data on emissions were incomplete and inconsistent, and noncompliance was widespread (Yu & Lo, 2014). Deng et al found that the measuring, reporting, and verification (MRV) and compliance rules were not fully implemented (Deng, Li, Pang, & Duan, 2018). The lessons from the seven pilot programs, both positive and negative, will be used in the development of the national ETS.…”

Section: Evolution Of China's Ets From Pilots To National Programmentioning

confidence: 99%

Key challenges for China's carbon emissions trading program

Wang

Liu

Tan

et al. 2019

WIREs Climate Change

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China's national carbon emissions trading program is expected to become the world's largest carbon market and is critical for achieving China's domestic mitigation goals. But China's trading program is likely to face significant challenges, due to its large scale and high complexity. First, the accuracy and credibility of China's emissions data have been widely criticized. There are significant inconsistencies between the national and provincial emissions inventories, and the facility‐level data are even less satisfying. Institutional capacities related to the carbon market need to be significantly enhanced to strengthen monitoring, reporting, and verifying capabilities. Second, compared to emissions trading programs in other parts of the world, China's program is likely to face greater market volatility, due to the country's economic structural transition from a manufacturing‐based to a service‐based economy. Wise cap‐setting and allowance allocation methods and proper price containment mechanisms are needed to maintain market stability. And third, China is a market economy with many features of a central planning system, particularly in the energy sector. Large state‐owned enterprises (SOEs) do not act as profit‐maximizing entities, and their behaviors could undermine the efficiency of the cap‐and‐trade program. To address these challenges, we provide a series of policy recommendations, including capacity building from central to local levels, wise selection of allowance allocation methods to cope with changing economic realities, and deepening market‐oriented reforms in energy sectors and SOEs. This article is categorized under: The Carbon Economy and Climate Mitigation > Policies, Instruments, Lifestyles, Behavior

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Effectiveness of pilot carbon emissions trading systems in China

Cited by 65 publications

References 26 publications

Key challenges for the establishment of the monitoring, reporting and verification (MRV) system in China’s national carbon emissions trading market

Key challenges for the establishment of the monitoring, reporting and verification (MRV) system in China’s national carbon emissions trading market

Energy‐Related Environmental Policy and Its Impacts on Energy Use in Asia

Key challenges for China's carbon emissions trading program

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