Policy Options for Low‐Carbon Power Generation in China: Designing an Emissions Trading System for China's Electricity Sector

Richard Baron, André Aasrud, Jonathan Sinton, Nina Campbell, Kejun Jiang and Xing Zhuang
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Richard Baron: International Energy Agency
André Aasrud: International Energy Agency
Jonathan Sinton: International Energy Agency
Nina Campbell: International Energy Agency
Kejun Jiang: Energy Research Institute
Xing Zhuang: Energy Research Institute

No 2012/12, IEA Energy Papers from OECD Publishing

Abstract: China faces the dynamic of rapid economic development that drives ever increasing energy use, primarily electricity, and consequently increasing CO2 emissions. It has taken a pledge to curb its emissions intensity, and is exploring various policy approaches to fulfil that aim, including emissions trading. This report explores the conditions needed for effective functioning of a CO2 emissions trading system in China’s electricity generation sector. It is based on extensive discussions with power generation stakeholders and observers of the electricity sector in China, as well as quantitative analyses of the impact of a CO2 emissions trading system (ETS) at plant, company and provincial levels.

Date: 2012-12-01
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