China s efforts to begin domestic carbon trading programs during its 12th Five Year Plan period (2011 2015) remained premature according to country s National Development and Reform Commission (NDRC). According to NDRC the country has yet to take on quantitative caps on emissions. Thus there is no basis for carbon emission rights trading in China right now Why the volatility in spices complex? Get to know the latest trends in India spot and futures market with insightful analysis. Subscribe to Commodity Online Info Service However it said the measures taken by the government to combat climate change would become increasingly strict and emission reduction goals would become increasingly quantified. It requires a certain length of time for China to trade carbon emission rights.
NDRC however said China would likely reach its goal of improving energy efficiency by 20 percent from 2006 to 2010. As a developing country China does not shoulder legally binding responsibilities to reduce carbon emissions according to the basic principle set by the United Nations Framework Convention on Climate Change. Putting a price on carbon is a crucial step for the country to employ the market to reduce its carbon emissions and genuinely shift to a low carbon economy industry analysts said. China has mostly relied on administrative tools to realize its 20 percent energy intensity reduction target between 2006 to 2010. To that effect the country s top 1 000 energy consumers have signed contracts with the central government to improve their energy efficiency.
But with rising domestic energy demand administrative measures are too expensive for the country to meet its future energy conservation targets. Although China has refuted the International Energy Agency s label of being the world s top energy consumer its energy consumption for 2009 stood at 2.132 billion tons of oil equivalent. China has pledged to cut its carbon emissions per unit of economic growth by 40 to 45 percent by 2020 from 2005 levels.
Commodity Online sourced by HT Media Ltd