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China and EU launched a three-year cooperation on a Carbon Emissions Trading Scheme during the China-EU bilateral dialogue on climate change held on May 20. EU will contribute 5 million euros to the project.

Carbon Emissions Trading Schemes are a new way for the world to reduce greenhouse gases. They treat greenhouse gas emissions allowances as commodities and allow high-emissions companies to buy emissions allowances from companies with low emissions. The mechanism is an attempt to reduce pollution caused by carbon emissions, and encourage companies to invest in clean technologies.

China has reportedly launched pilot Carbon Trading Emissions Schemes in seven cities, including Beijing, Tianjin, and Shanghai, and by 2020 will gradually establish a national carbon trading market to realize carbon emissions reduction goals.

Under the cooperation project, European experts will share their experience with Chinese experts and decision-makers from the seven pilot cities. They will also provide support to establish a national carbon trading emissions scheme in China.

Regarding carbon emissions trading in China, European Commission Director General for Climate Action Jos Delbeke suggested that setting a cap, or limit on emissions is the most important action. He said that setting a limit on the amount of emissions should reduce greenhouse gases while keeping the price for trading at a reasonable level. Meanwhile, he said that companies should report high quality and reliable emissions data.

According to Delbeke, environmental pressure will grow as China becomes a vital economy. He said that the EU can share experience with China and is prepared to do this.

The article is edited and translated from “碳排放交易”合作 中歐啟“三年計(jì)劃”; Source: Beijing News; Author: Gao Mei.