China to Institute Cap-and-Trade System

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Friday, July 23, 2010 at 9:29 am

The same day that Senate Majority Leader Harry Reid (D-Nev.) announced that he did not have the votes to pass a cap-and-trade bill, even a scaled-down utility-only version, news broke that China has decided to institute its own cap-and-trade system, though the details remain fuzzy.

Why is this significant? Republicans have long argued that there is no sense in capping greenhouse gas emissions in the United States if major emitters like China refuse to impose caps of their own. The announcement appears to deflate that argument, although Republicans can still make the same argument about other major emitters that are not capping their emissions.

This development was not lost on environmentalists, who pointed out the irony that China has acted before the United States to reporters yesterday.

The state-run China Daily reported yesterday:

The country is set to begin domestic carbon trading programs during its 12th Five-Year Plan period (2011-2015) to help it meet its 2020 carbon intensity target.

The decision was made at a closed-door meeting chaired by Xie Zhenhua, deputy director of the National Development and Reform Commission (NDRC), and attended by officials from related ministries, enterprises, environmental exchanges and think tanks, a participant told China Daily on Wednesday on condition of anonymity.

“The consensus that a domestic carbon-trading scheme is essential was reached, but a debate is still ongoing among experts and industries regarding what approach should be adopted,” the source said.

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11 Comments

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Pingback posted July 23, 2010 @ 9:30 am

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China to Institute Cap-and-Trade System
Pingback posted July 23, 2010 @ 9:44 am

[...] View full post on The Washington Independent [...]


China to Institute Cap-and-Trade System  | Skoopio.com
Pingback posted July 23, 2010 @ 12:48 pm

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ajm8127
Comment posted July 23, 2010 @ 2:17 pm

Now republicans will say that a cap-and-trade system is communist because China has one.


ValleyVixon
Comment posted July 23, 2010 @ 3:39 pm

I am confused about how Cap and Trade would decrease emissions? Company A have lowered their emissions by 10% of their allowance, Company B has reached their limit and needs to cover the 10% excess required to stay in business. So Company B buys the 10% from Company A. This sounds like another Wall Street scam. Wouldn't Company A's decrease and Company B's increase be a wash entry. I don't see the CAP but I do see the Trade. All I see is that the emissions level is still the same? Plus where is the incentive for the higher polluting companies to change, it seems that the cost of buying the credits would be cheap compared to the profits made by the polluting company. Is there a limit on how many credits a company can buy? Can they saved and used whenever they go over, like a CAP credit savings account. Any answers out there?


AntjuanAC
Comment posted July 23, 2010 @ 8:53 pm

The “Cap” comes in when they set an overall limit of total pollution of all companies everywhere. Then, theoretically, they will slowly start lowering that limit. As it is right now, the total amount of pollution continues to go up every year.


ValleyVixon
Comment posted July 23, 2010 @ 10:49 pm

Thank you, so if a CAP of 20% for all companies must be in effect by a certain date, the time line would have to be the same for all manufacturing in order to be effective. For the ones that cannot or will not meet this 20% CAP they will be able to trade for additional credits for cash. I still see a balancing act. So the companies who do reach the goal can sell the excess credits to companies that don't, a win for the ones in compliance and a win for the ones who aren't. How does that change the amount of pollution? The companies that comply just sell to ones who don't. Why can't we just not allow them to sell the products if they don't meet the standards. But I forgot the people of the world need all the crap produced and the governments have already set the deals. Thank you the issue is much clearer, rather like swimming in tar pits.


With No Climate Bill in Sight, Investors Turn to China North Capitol Street
Pingback posted August 17, 2010 @ 10:34 am

[...] climate change legislation is in fact driving investment to other countries, including China, which announced last month that it would begin capping its greenhouse gas [...]


Tim Burns: ‘I Don’t Believe In Global Warming’ « South Capitol Street
Pingback posted October 26, 2010 @ 2:45 pm

[...] nor that both China and India have established aggressive climate plans — including cap and trade programs — to limit their own carbon pollution: First of all, I don’t believe in manmade global [...]


Lea
Comment posted November 9, 2010 @ 5:24 pm

Global warming and Cap and Trade, are nothing but a scheme to make trillions of dollars for a few people.Maurice Strong, one of the proponents of this scheme is living in China, hobnobbing with the crooked elite in Beijing. It depends too much on “honesty” and that is certainly something you won't find in China's leaders. If Strong tries to return to the US or Canada, he will be arrested.


360043
Comment posted September 7, 2011 @ 12:44 pm

360043 beers on the wall. sck was here


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