Dr. Akihisa Mori presents on "Carbon Emission Trading Scheme and Energy Transition: The Case of China" at the Conference on "Governance for Sustainable Energy Transitions: The perspectives of the Asian Region" at Hong Kong Baptist University on 17 July 2017.
Abstract:
China launched the pilot carbon emissions trading scheme (ETS) in five cities and two provinces in 2013. Their efficiency is, however, suspected for inadequate domestic demand; limited involvement by private finance; incomplete regulator infrastructure; and excessive state intervention including price control. An increase in renewable energy and the use of offset credit could spur excess supply of carbon credit.
Against this backdrop, this presentation explores how China’s pilot ETS works for carbon emission reduction and energy transition, taking the ETS in Guangdong as a case. It employs mixed research method that consists of extensive review of documents and publications, statistical analysis and semi-structured interview.
There are two implications. First, it is not ETS, but other regulations such as coal consumption cap, carbon intensity target and approval of new power generation projects that are binding. Second, Guangdong province is causing carbon leakage by “supporting” coal power expansion in other provinces, rather than by purchasing offset credit generated there.
Profile:
Dr. Mori has conducted research on environmental, energy and climate policy, governance, and fiscal reform in East and Southeast Asia. He published several edited books, including Environmental Fiscal Mechanism and Reform: East Asia and Europe and Green Growth and Low Carbon Development in East Asia from Routledge.
