Romankiewicz_Outsourcing_book_temp.qxd 02/03/2010 15:08 Page 15
.de
wpd Hall 1
China and the Clean Development Mechanism
-ag
Stand 1326
pd.de
.m-schulz
ww
.
w
w
w
entered a period of rapid domestic infrastructure build-out. The
w
w
proportion of heavy industry to light industry increased as a result of
the new demand for cement, steel and other energy-intensive
emen,
materials. Noticing this reversal, the government introduced an energy
intensity target for its 11th Five Year Plan in 2005. Whereas pre-2000
reductions were largely the result of market conditions and
competition, post-2005 reductions have been the result of mandated
D-28211 Br
government policy.
China will put a binding carbon intensity target in its next five-year
plan (due to be composed in March 2010) and will take care to build
its own system of monitoring and measuring progress along the fürstenallee 23a,
way. Whether they subject that system to international scrutiny is
ur
K
the remaining question. While they have fought for funding for
G,
K
.
o
Even China, the most
advanced developing country,
y GmbH & C
currently has no infrastructure
g
for carbon emissions reporting,
let alone less advanced
think ener
developing countries. wpd
mitigation and adaptation in developing countries, they do not
consider themselves a ‘first candidate’ for such funding, according
to Yu Qingtai, China’s special envoy for climate change. With its
large foreign reserves and a rapidly growing economy, Todd Stern –
the US special envoy – does not consider China a candidate for such
funding either.
While CDM will continue on uninhibited for the next few years, its
scope may significantly decrease post-2012 in China. In the
meantime, project developers in China’s renewable industry and
intermediary firms await precious CER issuances and approvals from
the EB. Down the line, sectoral mechanisms will be difficult to set up
without close MRV of their industries, and since China may no
longer be that interested in receiving significant funding anyway,
the discussion about whether to set up such a mechanism may
eventually prove irrelevant.
It ultimately depends on how China will play its cards. The carbon
intensity target is important to China domestically for energy
security and a host of other reasons. However, internationally they
Energy starts in the head.
want it to be seen as a voluntary action taken as a developing
We take care that thoughts
country such that it can avoid hard emissions targets for as long as change direction.
possible. Domestic exchanges, such as the Tianjin Climate Exchange
and the Beijing Environment Exchange, are hoping that China will
provide a specific structure for its carbon intensity reduction that will
necessitate the development of carbon trading among provinces or
sectors. It is still difficult to say for sure how China’s carbon market
will develop in the end, but there is a strong possibility that the word
‘additionality’ will no longer be needed in our vocabulary. n
1. Assuming an average CER price of €10/tCO
2
e.
MODERN ENERGY REVIEW VOLUME 2 ISSUE 1
9x297_WPD_Kid_TouchBrief2.indd 1 28.01.10 15:18
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108