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China should speed up the establishment of carbon emissions-trading market, said Zhang Jianhua, director of the research bureau of People’s Bank of China (PBOC) on May 15.
There was great pressure on China to achieve goals of saving energy and reducing carbon emissions during the 11th Five-Year Plan, Zhang said at the 2010 Bocom international economic round-table conference.
According to the scheme set forth during the 11th Five-Year Plan, energy intensity, defined as energy consumption per unit of GDP, is to decline 20 percent. Energy intensity decreased 14.38 percent four years ago. But in the first quarter of 2010, energy intensity increased 3.2 percent.
Zhang said that if the Chinese economy maintains the growth rate of 8 percent, carbon emissions will face great international pressure in the future. China should set up carbon emissions-trading market as soon as possible, which is beneficial not only to raise funds for carbon emission reduction, but also to establish positive incentive mechanisms. China will need capital of 800 billion yuan to 1 trillion yuan to fulfill its carbon emission-reduction target during the 12th Five-Year Plan according to the current calculation.
There is a possibility of setting up a carbon emissions-trading market currently. China can learn from America’s voluntary trading mechanism and the European quota trading mechanism. China’s relative carbon emission goal can be transferred into the absolute emission-reduction target. Carbon emission trading can start with the energy-intensive industries like power, steel, construction materials and chemical industries.
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