China Carbon Timetable for 2017 May Be Hit by Slowing EconomyJason Furze (Author) Published Date : Sep 29, 2015 16:36 ET
A slowing economy in China threatens to undermine a deadline outlined a week ago by China President Xi Jinping to introduce a carbon timetable for the entire nation by 2017. Companies ranging from operators of coal fired plants to producers of cement and gas and oil companies, faced with difficulties to stay afloat might be reluctant to take part in the system of cap and trade that the government of China has vowed to launch at a national level.
With the slowing demand for energy in a slowing economy, companies do not want to add to their costs associated with a commitment for carbon emissions.
An analyst in Hong Kong said that businesses have so much to worry about now that it would not be good timing to launch the carbon emissions initiative as it will risk that the participants are not enthusiastic.
Xi s national market is scheduled to open during 2017 covering industries such as cement, iron and steel makers, as well as operators of power companies.
China had second pilot programs currently operating across the country.
The start of the country s national pollution-trading system is only a part of a bigger push by the country to cut emissions that are helping global warming.
China has committed previously to bring its emission to their peak in 2030.
In addition, the most populous country in the world today has been aggressively pushing wind and solar power development.
The system cap-and-trade provides a way for the largest corporate polluters to purchase credits from the companies that do not pollute that much.
This idea is that the emission trading system will prompt companies to cut emissions so they too can sell unused allocations.
Last year the emissions by China of carbon dioxide dropped for just the first time in over a decade
Energy demand in China will grow on average 2% per year through 2020.
China Carbon Timetable for 2017 May Be Hit by Slowing Economy