NDRC Expressly Opposes Local Carbon Exchange

On August 18, the National Development and Reform Commission formally launched the pilot work of the national low-carbon provinces and low-carbon cities in Beijing.
Xie Zhenhua, deputy director of the National Development and Reform Commission, stated at the kick-off meeting that the pilot provinces and cities need to play an exemplary role in low-carbon pilots during the “Twelfth Five-Year Plan”.
“Pilots and cities should demonstrate advanced nature, at least in the same region, and they should take the lead in demonstration.” Xie Zhenhua said that the pilot units are located in different regions, with different levels of development and characteristics. The provinces and cities currently selected are not necessarily the only ones that are involved in carbon emission reduction. The best area to do.
On July 19, the Department of Climate of the National Development and Reform Commission issued the “Circular on Launching the Pilot Work of Low-Carbon Provinces and Low-Carbon Cities” to identify five provinces of Guangdong, Liaoning, Hubei, Shaanxi, and Yunnan, and Tianjin, Chongqing, Shenzhen, and Xiamen. Eight cities of Hangzhou, Nanchang, Guiyang and Baoding are the first low-carbon pilot provinces and low-carbon pilot cities.
The National Development and Reform Commission requested at the kick-off meeting on August 18 that the above areas must report their implementation plans for low carbon pilots before August 31st.
The pilot program will include five aspects: preparing a low-carbon development plan, formulating supporting policies to support low-carbon green development, accelerating the establishment of an industrial system featuring low-carbon emissions, establishing statistics and management systems for greenhouse gas emissions, and actively advocating Low-carbon green lifestyle and consumption patterns.
“The National Development and Reform Commission requested that our pilot regions should be proactive and creative.” One local NDRC official said that so far he has not seen high-level come up with a unified pilot program or guidance, or specific pilot incentives.
An official from the National Development and Reform Commission stated that it is now necessary for all localities to form their own unique development ideas. The successful experiences explored in the region will be promoted at the national level.
At present, there are significant differences in the total amount of energy emission reductions and carbon emission reductions, and the completion status and experience of the pilot regions.
Taking Tianjin as an example, in 2009, energy consumption per unit of GDP in Tianjin has completed the target of reducing emissions by 20% in the “Eleventh Five-Year Plan” one year ahead of schedule. In the first half of this year, Tianjin’s energy intensity continues to decline.
The secret of the city's energy-saving missions being completed ahead of schedule is that their rapid growth in the promotion of high-tech industries has changed the economic structure, amplified the total economic output, and thus reduced the energy intensity per unit of GDP.
In Yunnan, which is also included in the pilot project, the total amount of energy reduction in the first half of this year is about 60% of this year's target progress. However, due to the increase in thermal coal use due to drought, the carbon intensity did not decrease with the energy intensity.
Yuan Kang, head of the Chongqing Low Carbon Research Center, said that Chongqing will promote carbon intensity reduction through the implementation of specific low-carbon projects such as new energy.
Officials from some pilot provinces and cities hope that the country can best give some guidance and direction.
“The next step in the determination of carbon emissions, the country can not be a unified low-carbon pilot program, but the need for a unified statistical accounting rules, otherwise it is difficult to break down the implementation.” Wu Jingding, deputy director of Tianjin Statistics Bureau said.
At present, the National Development and Reform Commission requires that the decomposing and monitoring of carbon indicators in the pilot areas should be tried first and taken the lead in the country. The National Development and Reform Commission is also negotiating with the pilot regions to decompose the carbon emissions per unit of GDP to various places. At the same time, the unit GDP energy consumption index is also expected to be decomposed into various provinces and cities.
The National Development and Reform Commission requested that the pilot regions should play an active role in carbon emission reduction, explore various policy support, work hard to reduce carbon intensity, and raise funds through exploring economic measures such as carbon finance.
Xie Zhenhua asked all local governments to boldly explore and set targets and adopt targeted carbon intensity reduction methods that can combine local characteristics.
However, the National Development and Reform Commission explicitly opposes all localities competing to launch the "carbon exchange". "Even the United States and the European Union have only one exchange respectively," said an official from the National Development and Reform Commission.

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