World news

ADB to help China set up ETS

The Asian Development Bank (ADB) will help China set up a pilot provincial emissions trading system that could pave the way for a national scheme and lower greenhouse gas emissions in the country, it said on Wednesday.

"ADB is providing a $750,000 equivalent grant to lay the groundwork for a cap-and-trade based emission trading system (ETS) in Tianjin municipal area which could begin operations as early as 2013", said the bank in a statement.

"ADB will help design the platform, including the trading rules and regulatory framework, as well as support the commissioning of the trading platform", said the bank.

"Emissions trading encourages companies to increase energy efficiency and renewable energy supply, which would ultimately result in reduced greenhouse gas emissions", said Pradeep Perera, Senior Energy Specialist in ADB’s East Asia Department.

"This pilot will provide valuable lessons for the design of a nationwide system to reduce the carbon intensity of the Chinese economy", he said.

China is the world’s largest emitter of carbon emissions, but it has been making major strides in recent years to improve energy efficiency and to increase the use of renewable power sources, said the bank.
 
 

Under its current five-year national development plan to 2015, China is looking at developing pilot emission trading schemes in the municipalities of Beijing, Tianjin, Shanghai, Chongqing and the provinces of Guangdong and Hubei.

Source: ADB