The Chinese government instructed seven of the country's local governments on 13 January to draft emissions control targets and allocation plans. The move indicates that China is beginning to embrace the concept of outright emissions targets, which it has historically avoided.
China's central economic planning body the national development and reform commission ordered the five cities of Beijing, Tianjin, Shanghai, Chongqing and Shenzhen, and two provinces — Hubei and Guangdong — to set their own carbon targets as part of the country's 12th five-year plan, which runs until the end of 2015.
Beijing has been reticent to commit to a ceiling in carbon emissions, preferring instead to measure progress based on carbon intensity — a measure of carbon emissions per unit of GDP. The NDRC has not been willing to put forward an outright target for the country, instead aiming for a 17pc reduction in carbon intensity by the end of 2015. But now Beijing wants the seven local governments to set outright caps. The NDRC previously set carbon intensity targets for these areas based on the national goal. Shanghai, Guangdong and Tianjin were told to meet an 18pc reduction in carbon intensity.
The new directive gives regions the discretion to pilot emissions programmes that will best work with the industrial and economic make-up of the region. The coastal cities of Beijing, Shanghai and Tianjin have a different economic structure relying more on service and financial industries, compared with industrial-focused Guangdong and Chongqing. Beijing plans to nationalise a carbon trading scheme as part of its effort to lower carbon emissions and introduce market mechanisms to drive down the costs of renewable energy. It will monitor the progress of the pilot schemes to choose the best aspects for a national roll-out, which is likely to take place in the 13th five-year plan (2016-20).
Regional emissions targets will be proposed by the local governments themselves. It is still unclear what penalties Beijing will impose if pilot programmes fail to deliver results. Cities and local governments have been vying for carbon exchanges and the title of “green city” to attract businesses and investment.