Jeff Swartz, director for international policy at the International Emissions Trading Association in Brussels, comments on how China’s carbon markets will place pressure on other emerging nations to deal with their output of heat-trapping gases. He commented by phone on June 14. China started today a test carbon market in Shenzhen, the first of seven.
On the probable impact of China’s markets on other nations: “It puts pressure on other countries including Brazil, India and Russia” to cut their emissions.
On China’s challenges:
“The role of offsets needs to be defined. There’s no process for a trader to open an account. The legal framework is still a little murky. We still don’t know what the emissions target is. Clearly there is a lot of work to do. Eventually, all the kinks will be worked out,” Swartz said. China is seeking respectful criticism of its plans, he said.
On China’s attitude to carbon markets:
“They are interested how to make money out of emissions trading. These pilots are an experimental period for China. It’s remarkable how quickly China has embraced emissions trading” because it was skeptical about it when the Kyoto Protocol was being negotiated in the mid-1990s, Swartz said.