• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 48 mins The power of propaganda has no boundaries: Which country has larger territory US od China
  • 10 mins Freedom of Speech for Dummies
  • 4 hours Iranian Oil Tanker struck by missiles off Jeddah
  • 29 mins South Korea Unveils Fighter Jet Mock-Up Amid Program Challenges
  • 16 hours Support Held. Back in UGAZ
  • 14 hours Crazy Stories From Round The World
  • 3 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 2 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 2 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 21 hours China's Blueprint For Global Power
  • 20 hours Total SA In Expansion: $600 million For India's Adani Gas
  • 2 hours How The US Quietly Lost The 1st Amendment

Breaking News:

Is This The End Of China’s Gas Boom?

Oil Jumps on Trade Hopes and Tanker Attack

Oil Jumps on Trade Hopes and Tanker Attack

Oil prices rose on Friday…

Stuart Burns

Stuart Burns

Stuart is a writer for MetalMiner who operate the largest metals-related media site in the US according to third party ranking sites. With a preemptive…

More Info

China to Implement a Carbon Trading Scheme in its Battle Against Rising Emission

No one would argue that pollution is a major problem in China.

As the world’s largest emitter of carbon dioxide, it will be interesting to see how rigorously Beijing enforces its latest experiment to curb greenhouse gas emissions.

The NY Times used the announcement of China’s trials with a carbon trading market to take a pop at US reluctance to adopt the idea, but the real story is whether China will be able to make a market-based system to incentivize reductions in emissions (which has descended into a farce in Europe) work effectively in a communist country – wouldn’t that be irony?

The system is to be piloted first in the southern city of Shenzhen, while six more regional pilot programs are said by the NYT to be planned for next year. The paper reports that under the Shenzhen program, the government will set limits on carbon dioxide discharges for 635 industrial companies and 197 public buildings that together account for about 40% of the city’s emissions.

Related article: Don’t for a Second Imagine We’re Heading for an Era of Renewable Energy

Polluters whose emissions fall below the limit can sell the difference in the form of pollution allowances to other polluters. These companies must decide whether it is cheaper to reduce emissions or pollute above their limit by buying allowances, whose price will be set by supply and demand. But as the paper points out, the pressure will be on, because the limits will decrease over time.

One of the problems in Europe is that in an effort to limit the damage to European emitters when competing against those outside the EU, the major firms have been awarded large numbers of credits, reducing the incentive to invest in CO2-controlling technologies. In addition, EU firms can offset their pollution by buying credits awarded to low-emission projects outside the EU, resulting in a massive transfer of funds from within Europe to developing countries with no overall reduction in emissions.

Related article: India, China, Among Others Eye Himalaya’s Hydroelectric Potential

It’s doubtful the Chinese will be quite so stupid and the market will almost certainly be localized to achieve genuine reductions, but while still in its pilot stage, you can’t help thinking it will encourage investment in areas not covered by the scheme – at the very least it will distort investment decisions between those cities within the scheme and those without.

Nevertheless, with an estimated 1 million people in China dying prematurely each year from air pollution and with warming temperatures potentially putting parts of China’s wealthiest coastal regions at risk, Beijing’s moves can be seen as a genuine effort to get to grips with a major problem.

For the sake of all those folks in Japan, Hawaii and the North American West Coast who receive the acid rain and airborne pollutants from China, we have to hope it works.

By. Stuart Burns



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play