ETS News from China

The technical work program focuses on five main areas:

• Emissions Trading: An emissions trading system (ETS) is a tool that uses market forces to reduce emissions at the lowest possible cost. For more information on how these systems work and operate in practice, see the Emissions Trading in Practice: A Handbook on Design and Implementation
• Carbon Taxes: A carbon tax is levied on GHG emissions where emitters will pay a tax on their emissions output. For more information on how carbon taxes are built and work in practice, see the Carbon Tax Guide: A Handbook for Policy Makers
• Offsets and Crediting: Many PMR Participants are pursuing some form of crediting instrument, whether it is an offset program to complement an ETS, carbon tax, or other domestic policy; or a scaled-up crediting instrument to be the primary vehicle to provide incentives for emission reductions.
• Emissions Data: National systems to monitor, report and verify emissions reductions are an important cornerstone for any mitigation tool, including those that price carbon. Such systems provide guidelines to entities responsible for reporting emissions and provide credible mechanisms for data management and data validation. This also includes a focus on data management and registries for corporate and facility level reporting, as well as allowance transactions. For common guidance on the design and implementation of MRV systems to support carbon pricing, see the Guide for Designing Mandatory Greenhouse Gas Reporting Programs
• Benefits of Carbon Pricing and Communications: In addition to reducing emissions, carbon pricing systems can deliver a number of health, economic and social benefits to a jurisdiction. These range from cleaner air, job creation and benefits to the tax system. How these benefits can be identified, measured and maximized through carbon pricing is a focus of this work stream. In addition, given stakeholder and public support for these instruments will be critical for the adoption and durability of carbon pricing, how policy makers communicate about carbon pricing is also examined here.