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|Original Source||Econet Monitor September 2016|
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2015 witnessed an historic global step forward in taking action on climate change. World leaders reached an agreement on December 12, 2015 at the 21st Conference of the Parties (COP 21) to the United Nations Framework Convention on Climate Change (UNFCCC) in Paris to keep the global average temperature increase well below 2°C and pursue efforts to hold the increase to 1.5°C.
As of May 1, 2016, 162 intended nationally determined contributions (INDCs), representing 190 Parties, had been submitted to the UNFCCC and will automatically become NDCs after ratification. These INDCs outline the intended national efforts towards reducing greenhouse gas (GHG) emissions and climate resilient development under the Paris Agreement. More than 90 of the submitted INDCs include proposals for emission trading systems (ETSs), carbon taxes and other carbon pricing initiatives.
A major step forward for global carbon pricing took place in 2015 with China rolling out its plans for a national ETS. On September 25, 2015, the Chinese President Xi Jinping announced that the Chinese national ETS will commence in 2017 including the sectors: power, steel, non-ferrous metals, building materials, chemical, paper, aviation and transportation. The seven operating pilot ETSs in the provinces of Beijing, Chongqing, Guangdong, Hubei, Shanghai, Shenzhen and Tianjin are to be merged into the national ETS under unified rules and a detailed transition plan is currently being developed under leadership of China’s National Development and Reform Commission (NDRC). Early unofficial estimates show that following the launch of China’s new nationwide mandatory carbon market, about half of global GHG emissions will be generated by jurisdictions that are putting a price on carbon.
For further reading of the English text, please download the September issue of the Econet Monitor with the full text of this article on the pages 14-21.
Econet Monitor September 2016: PDF (4 MB)