Carbon trading with Chinese characteristics
Mainland's cautious steps towards a nationwide scheme skirt around EU-style caps on emissions in sticking to a path that safeguards growth
From economic reform to the internationalisation of its currency, the mainland is known for its step-by-step approach, with "Chinese characteristics".
Controlling carbon dioxide emissions is no exception.
In the European Union, the world's first region to impose a "cap-and-trade" system on carbon emissions in 2005, more than 11,000 power stations and industrial plants have been subjected to caps that are reduced over time. This will see the region achieve its self-imposed goal of cutting emissions in targeted sectors by 21 per cent in 2020 from levels in 2005.
To leave room for economic growth, Beijing has not agreed to binding caps on its emission volumes, but has set a target to cut emission intensity - carbon emissions per unit of gross domestic product - by 40 to 45 per cent by 2020 from the 2005 level.
"China cannot impose absolute caps like in the EU as it needs to leave room for growth, including that of heavy industries," said Wu Changhua, greater China director at The Climate Group, a not-for-profit organisation that campaigns for action to mitigate climate change.
But sharp reductions in emissions will be needed since the mainland has relied too heavily on exports and materials- and energy-intensive industries to drive economic growth, resulting in unsustainable growth and severe pollution. The public's tolerance of air pollution was pushed to the limit in January when Beijing was shrouded in dense smog, with concentrations of PM2.5 - inhalable particles less than 2.5 microns in diameter that can damage health - in one 24-hour period reaching almost 40 times the safe limit recommended by the World Health Organisation.