Can countries without national curbs on greenhouse gases adopt emissions trading schemes?
It’s a debate that splits China’s environmental entrepreneurs. Cao Haili reports. China’s policymakers are beginning to accept the use of market mechanisms to achieve goals on addressing climate change and reducing energy use. There are currently three major exchanges in China that trade environmental and energy assets, in Beijing, Tianjin and Shanghai. All were set up with support from local governments, and all began operations in the past year. Unlike the exchanges in Beijing and Shanghai, the Tianjin Climate Exchange is a joint enterprise. Its shareholders include: CNPC Assets Management, a subsidiary of China National Petroleum Corporation; Tianjin Property Rights Exchange; and the Chicago Climate Stock Exchange. The Tianjin exchange decided early on to adopt the “cap-and-trade” model used by the Chicago exchange – an emissions trading model where members adopt a voluntary, yet legally binding commitment to meet greenhouse-gas reduction targets. Before entering the Chinese market,
