Background

The Chinese government has announced its aim to reduce carbon intensity by 40-45% from its 2005 levels by 2020, and by 17% during the 2010-2015 timeframe. Carbon trading is a market-based mechanism that can help achieve emission reductions cost-effectively. 

The National Development and Reform Commission (NDRC) has already drafted rules for project-based carbon trading to begin in the near term, and with a view towards the longer term, will also select provinces to pilot allowance-based emissions trading. 

For both types of trading, a national-level registry framework is a vital policy component for keeping  the rules consistent for trading entities and local carbon exchanges.

Purpose

Create a study outlining the specifics of a national level carbon trading registry system to facilitate both project-based trading in the near future and allowance-based carbon trading in the coming years

Main Activities

• Investigate the experiences of similar carbon trading systems including EU-ETS, RGGI in the US, White Certificate Schemes in Italy, the UK, France and PAT in India
• Outline the structure and processes for a project-based carbon trading registry framework scheme at national level, including trading rules, registry function, management structure,  required trading data, interactions amongst trading entities, interface between traders and exchanges, software tools
• Create a corresponding proposal for processes and structure for a national allowance-based trading system, with the equivalent level of detail relevant to this type of trading
• Hold 6-8 stakeholder workshops on the framework and policy design, and one for dissemination of the finished framework
• Make recommendations on the institutional arrangements for carbon trading and make proposals to NDRC on how to establish and manage the registry system

Expected Impact

• Clearly defined and consistent national-level carbon trading registry rules and procedures in China for both project-based and allowance-based trading
• CO2 reduction of approximately 1500 Mt by 2015,  achieved in a cost-effective way
• Guidance effect on local carbon exchanges