Page 301 - Low Carbon Development in China and India
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developers across provinces. The slow bureaucratic process, complex
design, and costs related to CDM in India have also drawn criticism.
Domestic Carbon Market
At present, there are a number of sub-national, national, and supra-
national voluntary and mandatory cap-and-trade schemes active in the
EU, the US, Australia, New Zealand, and Japan. Developing countries
such as China and South Korea are following suit (Ernst & Young
2012). Regional schemes are in operation in China and Korea launched
its carbon market in January 2015. These schemes are usually designed
within domestic climate change policy frameworks and mostly involve
the private sector, including business and industry.
India has not shown propensity towards designing a domestic
carbon emission trading system. Upadhyay (2010) and Sterk &
Mersmann (2011) explain that this is because of two reasons: first,
there is political reluctance; second, there seems to be an institutional
overlap between existing policy mechanisms, including CDM CERs
which have been successful in India. In this regard, lessons can
be learnt from the Chinese experience of implementing domestic
trading schemes.
China’s domestic carbon markets are part of China’s strategy to cut
its greenhouse gas emissions per unit of GDP to 40–45 per cent, below
2005 levels, by 2020 as the country seeks to limit climate change, address
future energy security issues, and stave off international criticism for
being the world’s biggest emitter. Table 2.8 depicts a comparison of
emissions coverage under the emission trading scheme (ETS) pilots.
Enterprises and buildings that emit more than they have permits to
cover can buy additional permits in the form of emissions allowances
or use offset credits issued by the central government, known as
Chinese Certified Emissions Reductions (CCERs). China’s National
Development and Reform Commission (NDRC) developed the
first batch of 52 CCER methodologies for voluntary greenhouse gas
emissions reduction in March 2013. The CCER methodologies are
based on the evaluation of Clean Development Mechanism (CDM)
methodologies approved by the UN Executive Board, and adapted
to China’s need. The 52 CCER methodologies align with China’s
traditional focus on renewable energy, energy efficiency and fuel
switch, and methane.
Shenzhen became China’s first city to launch the pilot. By the end of
2013, Shenzhen, Shanghai, Beijing, Guangdong Province, and Tianjin
had all launched carbon emission trading markets. In the second
quarter of 2014, Hubei Province and Chongqing followed.
266 Low Carbon Development in China and India
design, and costs related to CDM in India have also drawn criticism.
Domestic Carbon Market
At present, there are a number of sub-national, national, and supra-
national voluntary and mandatory cap-and-trade schemes active in the
EU, the US, Australia, New Zealand, and Japan. Developing countries
such as China and South Korea are following suit (Ernst & Young
2012). Regional schemes are in operation in China and Korea launched
its carbon market in January 2015. These schemes are usually designed
within domestic climate change policy frameworks and mostly involve
the private sector, including business and industry.
India has not shown propensity towards designing a domestic
carbon emission trading system. Upadhyay (2010) and Sterk &
Mersmann (2011) explain that this is because of two reasons: first,
there is political reluctance; second, there seems to be an institutional
overlap between existing policy mechanisms, including CDM CERs
which have been successful in India. In this regard, lessons can
be learnt from the Chinese experience of implementing domestic
trading schemes.
China’s domestic carbon markets are part of China’s strategy to cut
its greenhouse gas emissions per unit of GDP to 40–45 per cent, below
2005 levels, by 2020 as the country seeks to limit climate change, address
future energy security issues, and stave off international criticism for
being the world’s biggest emitter. Table 2.8 depicts a comparison of
emissions coverage under the emission trading scheme (ETS) pilots.
Enterprises and buildings that emit more than they have permits to
cover can buy additional permits in the form of emissions allowances
or use offset credits issued by the central government, known as
Chinese Certified Emissions Reductions (CCERs). China’s National
Development and Reform Commission (NDRC) developed the
first batch of 52 CCER methodologies for voluntary greenhouse gas
emissions reduction in March 2013. The CCER methodologies are
based on the evaluation of Clean Development Mechanism (CDM)
methodologies approved by the UN Executive Board, and adapted
to China’s need. The 52 CCER methodologies align with China’s
traditional focus on renewable energy, energy efficiency and fuel
switch, and methane.
Shenzhen became China’s first city to launch the pilot. By the end of
2013, Shenzhen, Shanghai, Beijing, Guangdong Province, and Tianjin
had all launched carbon emission trading markets. In the second
quarter of 2014, Hubei Province and Chongqing followed.
266 Low Carbon Development in China and India
