Search

Begin New Search Topic Climate Change Political Geography Asia-Pacific Content Type Policy Brief Publishing Institution Belfer Center for Science and International Affairs, Harvard University

1. The Offsetting Mechanism in Guangdong Province’s ETS: Lessons Learned and the Way Forward

Author:
Yang Shu
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
As one of the first low-carbon pioneering provinces in China, Guangdong launched its carbon market in 2013. An important design feature of the Guangdong Province emissions trading system (ETS) has been the use of offset credits. This brief, in both Chinese and English, explores the Guangdong ETS’s offset mechanism and its possible future evolution. The brief builds on discussions in an online research workshop on Guangdong Province’s ETS, conducted June 16 – 17, 2021 by the Harvard Project on Climate Agreements and the Research Center for Climate Change, Guangdong University of Technology, directed by Professor Zeng Xuelan. Information on the workshop, including the agenda, participant list, and most presentations, is here. The Harvard Project’s initiative on Guangdong Province’s ETS is supported by Energy Foundation China.
Topic:
Climate Change, Environment, and Carbon Emissions
Political Geography:
Asia-Pacific

2. Increasing the Emissions-Reduction Efficiency of Carbon Trading Schemes in China Under the “30.60” Target: Reflection on the Carbon Markets of Guangdong Province, China

Author:
Chen Shaoqing
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Key Points: • Guangdong currently has two pilot carbon-emissions-trading markets (in Shenzhen — and in Guangzhou, for the remainder of Guangdong Province). The Guangdong—Hong Kong—Macao Greater Bay Area (GBA) carbon market will be established in the near future. Therefore, Guangdong Province has regional advantages in innovation in the low-carbon field. • In September 2020, China announced its intention to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. To meet its responsibilities under the “30.60” target, GBA needs to choose a less costly and more efficient way to reduce emissions, build resilience to climate impacts, and promote green economic recovery from the COVID-19 pandemic. • In terms of accounting methods, life-cycle accounting from production and consumption perspectives should be the methodological basis for cities, parks, and enterprises to participate in carbon trading. • Trading activity in China’s carbon markets needs to be increased. In the future, carbon markets can gradually be opened to small and medium-sized enterprises and individuals, and cross-border trade can also be included in carbon trading mechanisms, with proper risk management. • At present, carbon quotas in local pilots and the national market are allocated freely. In the future, a reasonable mix of auctioned allocation and free allocation can be considered to establish a transparent, fair, and dynamic carbon-quota-allocation mechanism. • After starting with the electricity industry, the national carbon market will continue to include other key high-carbon industries; China should seek balanced development between local pilots and the national carbon market to improve the efficiency of emission reduction.
Topic:
Climate Change, Environment, Carbon Emissions, and Air Pollution
Political Geography:
Asia-Pacific

3. China’s National Carbon Market: Paradox and Potential

Author:
Cecilia Springer
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
China announced it would launch a national carbon market in 2017, yet this policy is taking years to come into effect. What will it take for a carbon market to work in command-and-control China? This policy brief explores an understudied challenge—emissions accounting—and identifies potential opportunities that have arisen in the first phase of China’s national carbon market.
Topic:
Climate Change, Economics, Energy Policy, Environment, Natural Resources, and Carbon Emissions
Political Geography:
China and Asia-Pacific