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Guangdong launches pilot emissions trading scheme

12 Sep 2012 12:10 (+01:00 GMT)
Guangdong launches pilot emissions trading scheme

London, 12 September (Argus) — The industrial powerhouse province of Guangdong in China has launched a carbon emissions trading pilot project in an attempt to rein in carbon emissions. Beijing is hoping that a successful programme will emerge from the seven regions it has chosen to champion pilot schemes as it tries to reduce carbon intensity — a measure of carbon emissions per unit of GDP — by 40-45pc by 2020.

Guangdong launched the scheme yesterday, which it will implement in three phases. The first phase will run until 2015 and will be voluntary and project based. It will focus on nine industries, including electricity, cement, steel, ceramics, petrochemicals, textiles, non-ferrous metals, plastics and paper. These industries consume over 40pc of the province's energy, meaning gains in these industries could significantly lower emissions. But the province's heavy reliance on industry means that it could face local opposition from businesses as China's slowing economic growth appears more protracted and severe than previously thought.

The second phase of the project in 2016-20 will build on the voluntary scheme and the province aims to extend it to the transport and construction sectors. It will also give quotas during this period. The final phase, beginning in 2020, will expand to include intra-province emissions trading.

Guangdong is one of two provinces in the pilot programme, alongside central Hubei province. The remaining five regions are the cities of Beijing, Tianjin, Shanghai, Chongqing and Shenzhen. Beijing launched its pilot trading scheme on 28 March but the project will not be operational until next year.

China aims to reduce carbon intensity nationally by 17pc by 2015. But individual regions have been given targets ranging from 10pc to 18pc. Guangdong, along with Shanghai and Tianjin, has a target of 18pc. The other province participating — Hubei — was given a 16pc target for 2015.

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