Chinese trading schemes for energy efficiency and carbon reductions

The Government of China plans to pilot a trading mechanism with energy efficiency certificates. The aim is to achieve 16% reduction in energy intensity cost-effectively during the 12th Five Year Plan period.

 

A carbon emission cap and trade scheme is currently being piloted in five cities and two provinces, and it is the intention to expand the scheme to cover all of China. One of the challenges is to make sure that the use of carbon trading schemes and the goal to increase the energy efficiency operate optimally together.

 

Together with Ricardo-AEA (United Kingdom) Ea Energy Analyses has been providing assistance to the World Bank on a review of trading schemes for energy efficiency, renewable energy and carbon emissions.

 

The objective was to review international experiences in order to understand how energy efficiency, renewable energy and carbon trading mechanisms are designed and how they interact. The recommendations of the review will constitute an input to the formulation of an energy efficiency trading scheme in China.

 

The project resulted in a review of experience with white (Energy Savings) and green (Renewable Energy) certificates trading and carbon cap and trade. The results were drawn from analysis of policies in UK, Italy, California, India and higher level assessment of policy at EU level. It also presented preliminary recommendations for policy approaches in China.

 

The project ran from March to August 2013

 

Last update 17-Jul-2015

 

Helge Ørsted Pedersen

 

 

Ea Energy Analyses Frederiksholms Kanal 4, 3. th.1220 Copenhagen KDenmark Tel work+45 88 70 70 83 Fax +45 33 32 16 61

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