China confirms 2017 launch of national emission trading scheme, pledges 20 billion yuan to developing countries
China announced on Friday that it would launch a national emission trading system in 2017 and pledged 20 billion yuan (US$3 billion) to help developing countries combating climate change.
In a joint climate statement with the US, China said the emission trading system would cover power generation, steel, cement and other key industrial sectors.
China also said it would prioritise power generation from renewable sources, which would better support its ambitious non-fossil energy targets of 15 per cent by 2020 and around 20 per cent by 2030.
The joint statement is one of the few policy announcements to have been made by the two countries as Chinese President Xi Jinping pays his first state visit to the US.
Beijing agreed to strictly control public investment flowing into projects with high pollution and carbon emissions both domestically and internationally. It will also make available 20 billion yuan through a bilateral fund designed to help developing countries combat climate change.
“This is by far China’s most significant commitment to climate finance to date,” the statement said.
The commitment is consistent with the US$3 billion pledge to the Green Climate Fund, which is established to support climate action in developing countries, the statement said.
US officials said such funding was crucial for building support for a global climate change agreement to be reached in Paris in December from developing countries.