Central bank outlines tentative scheme for emissions trading
Reuters in Beijing – Updated on Jun 07, 2008
The People’s Bank of China has drawn up a tentative outline for a domestic emissions-trading scheme that could cover everything from greenhouse gases to water pollutants, and speed the country’s push for greener growth.
The move by the central bank is the first sign that Beijing is seriously considering a comprehensive national strategy to force companies either to control their pollution or pay for their excess, as it struggles to meet its own tough environmental goals.
A quota scheme would also help the country keep track of greenhouse gases at a time when it is coming under international pressure over its rising carbon dioxide output, and could pave the way for eventually joining an international system.
The plan, along with key emissions-trading concepts, was laid out at a seminar for top officials, including the central bank’s deputy governor, Yi Gang , and a deputy general manager of the country’s sovereign wealth fund, Xie Ping.
“Our country already has the basic conditions necessary for instituting an emissions quota and trading system,” a document presented at the seminar said.
The seminar also explored the mainland’s previous flirtations with the sector. At least 10 cities have tried some kind of experimental pollution-permit and trade system, and both Beijing and Tianjin are interested in setting up emission exchanges.
The central government has never previously offered more than vague statements of support, but now the mainland’s environmental woes are taking a rising economic and diplomatic toll.
The mainland is widely thought to have overtaken the United States as top emitter last year – although per person it produces far less greenhouse gas than developed countries – and is under pressure to speed up efforts to control emissions.
And while a cap and trade system could cover a variety of pollutants, including acid-rain-causing sulfur dioxide, which is a major problem for the mainland, extensive data on climate change in one presentation suggested greenhouse gases would be one target.