China Starts Carbon Trading Scheme

China Starts Carbon Trading Scheme

Part of: GS Prelims and GS -II – International relations and GS – III – Climate change

In news China recently introduced its long-awaited emissions trading system.

• It is a system that would create the world’s largest carbon market and double the share of global emissions covered under such programs.

What are the features of the carbon trading scheme?

• The carbon market will help the country lower greenhouse-gas emissions.
• It will help China achieve its goal of reaching peak emissions before 2030 and carbon neutrality, or net zero emissions, by 2060. 
• The program will initially involve such 2,225 companies in the power sector which  are responsible for a seventh of global carbon emissions from fossil-fuel combustion
• Under the trading program, emitters such as power plants and factories are given a fixed amount of carbon they are allowed to release a year. They can in turn buy or sell those allowances. That pushes emitters to think of controlling and reducing emissions in terms of a market.
• Over the next three to five years, the market is set to expand to seven additional high-emissions industries: petrochemicals, chemicals, building materials, iron and steel, nonferrous metals, paper, and domestic aviation.
• Rather than be subject to the absolute caps on emissions in other trading programs, Chinese companies will start off with allowances that use benchmarks based on previous years’ performances which can be traded by negotiation or auction.

What are India’s Initiatives to Reduce Emissions?

• India shifted from Bharat Stage-IV (BS-IV) to Bharat Stage-VI (BS-VI) emission norms from 1st April 2020 which was earlier to be adopted by 2024.
• It has distributed more than 360 million LED bulbs under the UJALA scheme, which has led to energy saving of about 47 billion units of electricity per year and reduction of 38 million tonnes of CO2 per year.
• International Solar Alliance: Indian initiative conceived as a coalition of solar-resource-rich countries to address their special energy needs.
• The National Action Plan on Climate Change (NAPCC): Launched in 2008 by the Central government, it aims at creating awareness about the threat posed by climate change and the steps to counter it.
• Energy Conservation Building Code (ECBC), 2017: Developed by Power Ministry and BEE, ECBC seeks to promote low carbon growth by integrating the renewable energy sources in the design of the buildings
• Green Rating for Integrated Habitat Assessment (GRIHA): It evaluates the environmental performance of a building holistically over its entire life cycle, thereby providing a definitive standard for what constitutes a green building

News Source: TH