China environment

Here we go, the first ETS pilot is concretly starting. 30RMB a ton of CO2 is a first step, in line with the EU ETS price. But studies shown that to be able to achieve the carbon intensity reduction carbon price should be much higher. Let see what will happen next year for the surrending permit period of CO2 emitted in 2013.

Shenzhen shows a great importance to be the first pilot to start. However, forcing installations to realize a trade of CO2 permit does not means that their ETS is in place and will run then. Next Tuesday opening would probably be the only trade in Shenzhen ETS for a long period. Trade are willing to appear more at beginning of 2014 when installation will have to satisfy what they need to surrender for CO2 emitted in year 2013.

Choosing an absolute or intensity cap do not chance anything on the level of reduction pressure on installations. Only the final target is the most important like for EU -21% compare to 2005 level. For China, pilots will try to satisfy their carbon intensity targets for 2015 event if they defined an absolute or intensity cap.

This is a great news. But please, we have to stay moderate on the future situation. China position for international binding agreement did not change. Even agreeding that China is making a lot of effort addressing to climate changte (most than all other countries), estimated peak is still 2025. Saying that China propose to set a cap in 2016, only means that they will compute the absolute cap every year compare to the intensity target. At least untill 2025. Now, we have to see how strong the cap will be. Will it only satisfy the 40% intensity carbon reduction target for 2020 ? First, we should more concentrate to make the ETS pilotes in China working and be efficient on intensity emission reduciton.

This study confirms the comment on previous article. China has to set stronger target and define itself in a position between developping and developped country.

Chinese responsability on climate change cannot be anymore considered equally has the impact of developping countries even India which following Chinese steps but still far away behind.

Ocean Thermal Energy Conversion (OTEC) uses the temperature difference between cooler deep and warmer shallow or surface ocean waters to run a heat engine and produce useful work, usually in the form of electricity. This technology is an interesting renewable energy for coastal in hot area. When this project will start ? Where will it be ? 

It is good to know that the 2 biggest polluters are agree to discuss about an international binding agreement. Hope they will join the negotiation table and support a stronger target...

A bad news for the emission trading system (ETS). The back-loading is not the sustainable solution to solve the structural problem of ETS but it was the fastest action that we could take to limit in the future the size of the problem. ETS is on paper a very nice concept, but its implementation is very hard and sensible. EU-ETS was the first attempt and we know today that changes should be made to improve it.

"Beyond the seven official pilots, 100 other regions and cities want to start carbon exchanges.", interesting, which are they ? Anyway, this shows the seriousness of China to use market instruments to control emission. 

It is sure that China faces many huge challenges all in the same time. Set a carbon market, have a accurate and transparent meseare, report and verification process, have an energy market, accept financial investors into their ETS.

I clearly beleave that for the test phase 2013-2016, CO2 permit trades won't be significant. 

The sentence: "cap and trade" market systems are believed to be the most efficient way to allocate responsibility and reduce pollution." is always used to justify carbon market compare to carbon tax. But seen what happened in the world, the cost of carbon market climate policy reached soo huge amount that it is today hard to say that it seems the most efficient.

Shutting coal-fired boilers is good but if they are not relocated in another location like Hebei for example at few kilometers of Beijing. Just remember that Beijing and its neighbor provinces have the most polluted air in the world.

China represents 92 percent of the total H.C.F.C. production of developing countries. For climate change issues, H.C.F.C.s should be reduced as much as possible.

An interested methodology to measure inequality in carbon emissions.

The important point is that China and US the biggest GHGs emittors have to join the future binding international agreement if we want to have a chance to keep within a 2 degrees increase target.

Only less than one week after the announcement of Shenzhen ETS launch for June 2013, it is the turn of Shanghai. Same month of the year! What about the other pilots, we will probably hear from them pretty soon.

Willing to see how effective will be the launch of ShenZhen ETS. China is setting up a carbon market in a such small time frame that it will take time to run. Even 2020 is a huge target for a national ETS. Think about the time Europe has needed to get to the point there are now in phase 3.