On 22 February 2012, E3G, working with the UK’s Foreign and Commonwealth Office (FCO), Wuhan Optic Valley United Property Rights Exchange (OVUPRE) and Wuhan Carbon Reduction Association (WCRA), organised a ‘Sino-Europe Carbon Emission Trading Roundtable’ in Wuhan. The Roundtable was aimed at facilitating exchanges of expert opinion and was targeted at policy makers and the designers of Emissions Trading Schemes (ETS) in Hubei Province.
In November 2011, the Chinese government had announced a pilot greenhouse gas (GHG) ETS in Beijing, Tianjin, Chongqing, Shanghai, Shenzhen, Hubei and Guangdong. According to the government plan, these pilots need to set up regional emission trading schemes by 2013, while a nationwide trading scheme will be adopted by 2015. Progress is under way in these pilot cities and provinces although it is far from certain that the deadline will be met due to the amount of work that is still outstanding. If these pilots fail to be set up properly, it will cause a serious setback to China’s overall ETS ambition.
The objectives of the Roundtable were threefold:
- Identify and raise policy and political issues related to carbon trading;
- Create a network of learning and sharing between European and Chinese stakeholders; and
- Introduce other complementary low carbon financing mechanisms.
More than 55 people participated in the Roundtable to discuss the objectives and design options of Hubei’s carbon trading scheme; lessons learned in relation to governance, impact on and role of the industry from other trading schemes especially the EU ETS; and policy choices for Hubei Province going forward. Specific issues raised at the Roundtable included Monitoring, Reporting and Verification (MRV), baseline calculations, cap and allocation, allowance and pricing, and incentive mechanisms. A short summary report is attached here for download.
The Roundtable received positive feedback from both European and Chinese experts:
"Thank you for a very productive workshop in Wuhan this week. I must say it was very well organized and prepared." Jeff Swartz, Director of International Policy, International Emissions Trading Association
"Useful workshop for Hubei, especially at the starting phase of establishing a carbon market." Tian Qi, Director of the Climate Division, Hubei Province Development and Reform Commission
"I am glad to see lots of key experts from carbon market come and bring valuable knowledge and lessons learned to Hubei, very helpful for Hubei." Qi Shaozhou, Professor, Wuhan University
Please contact Shin Wei Ng if you would like more information about the Roundtable.
