China now wants to get serious with its long-awaited emissions trading system (ETS) and start doing it this month. The preparatory work was "essentially complete," said Vice Environment Minister Zhao Yingmin on Wednesday. "We will choose a time for the introduction of the national ETS and start trading in July." He did not give an exact date. Insiders expect emissions trading to start on Friday. The program was supposed to be introduced in 2017, but was then repeated delayed, in part due to concerns about the transparency of emissions data, most recently uncovering a case where an energy company had falsified data.
Trading in CO2 certificates is an important instrument for climate protection. Industry and power plants, as the largest CO2 producers, are assigned a certain amount of rights that decrease over the years. Those who produce in an environmentally friendly way can sell excess certificates on the stock exchange to companies that need additional rights. Along with the USA, China is the world's largest producer of CO2. Today the EU Commission is presenting a comprehensive package for the climate-friendly restructuring of the community with a number of tightened or new instruments. The “Fit for 55” concept will include a Europe-wide CO2 price on fuel, heating oil and gas, as was introduced in Germany this year. Industry and the energy sector will have to get by with fewer CO2 pollution rights,which are also reduced even more each year. In return, the Commission is considering introducing a CO2 tax at the EU's external border for some industries such as steel, which are in international competition. Competitors without comparable climate requirements then have to pay a CO2 tariff on their products. Social hardships for commuters or tenants because of the surcharge on fossil fuels are to be compensated for through a social fund.
"Fit for 55" should first ensure that the new EU climate target of 55 percent greenhouse gas reduction compared to 1990 by 2030 is achieved. By 2050, practically no more CO2 should escape into the atmosphere. The Commission's proposals have to be approved by the member states and the EU Parliament. Discussions are expected that could last well over a year.