China’s future emission reduction challenge and implications for global climate policy

In December 2015, China joined 190 plus nations at Paris in committing to the goal of limiting the rise in global average temperature to ‘well below’ 2°C. Carbon budget analysis indicates that goal will require not only that the European Union and US reduce their emissions by greater than 80% by 2050, but that China at least comes close to doing so as well, if any budget is to be left over for the rest of the world (RoW). Given that RoW emissions are, and will come from, low-income and emerging nations, China’s emission reduction potential is of no small consequence. In this paper, we use the Kaya identity to back out changes in the drivers of CO₂ emissions, including gross domestic product (GDP), energy intensity (E/GDP) and the carbon content of energy (C/E), the latter two calculated to be consistent with China’s long-term GDP growth rate forecasts and specified 2050 CO₂ emission reduction targets. Our results suggest that even achieving China’s highly optimistic renewable energy targets will be very far from sufficient to reduce China’s CO₂ emissions from 9.1?Gt it emitted in 2015 to much below 3?Gt by 2050. Even reducing its emissions to 5?Gt will be challenging, yet this falls far short of what is needed if the world is to meet its ‘well below’ 2°C commitment.

Key policy insights

• Under the Paris Agreement there is great pressure on China to very substantially reduce its emissions by 2050.

• While China has attached great importance to renewables and nuclear energy development, even achieving the most optimistic targets would not be sufficient to reduce China’s emissions from 9.1?Gt in 2015 to much below 3?Gt by 2050.

• China’s emission reduction potential falls far short of what is needed if the world is to meet its Paris ‘well below’ 2°C commitment, even if the EU and US reduce their emissions to zero by 2050.

• Emission cuts consistent with the Paris Agreement will require that China and the world give much greater weight to advancing research and development of scalable low-, zero- and negative-carbon sources and technologies.

     

China’s pathway to carbon neutrality for the iron and steel industry

As a hard-to-abate sector, the iron and steel industry is responsible for 22% of China’s total carbon emissions and therefore plays a crucial role in achieving China’s carbon peaking and neutrality target. Nearly 90% of China’s iron and steel output is produced with coal-based blast furnaces, which results in high carbon emission intensity. To peak China’s carbon emissions and achieve the carbon neutrality target, it is essential to accelerate the application of breakthrough technologies such as carbon capture and storage (CCS) and hydrogen-based steel-making. This paper estimates the future CO₂ emissions from China’s iron and steel industry in pathways that consider the influence of different technology portfolios, technology maturity, decarbonization of power systems, and future steel production output. The results show that using currently available technology, China’s iron and steel industry can reduce CO₂ emissions by more than 50%. However, it cannot achieve the neutrality target without using innovative technologies. By combining conventional strategies with net-zero emission technologies such as CCS and hydrogen metallurgy, approximately 80–90% emission reduction can be achieved, thus leading to a carbon neutrality pathway, which can meet the 1.5°C targets of the carbon budget limit either. In the future, carbon emissions' reduction potential will be influenced by the decarbonization of power systems and the diffusion rate of innovative technologies. To achieve carbon neutrality, it is essential to act sooner and faster.     

Economic instruments for mitigating carbon emissions: scaling up carbon finance in China’s buildings sector

The relevance and cost-effectiveness are key criteria for policymakers to select appropriate policy and economic instruments for reducing carbon emissions. Here we assess the applicability of carbon finance instruments for the improvement in building energy efficiency by adopting the high efficiency standards as well as advanced energy supply systems, building on a case study in a northern city in China. We find that upgrading the current Chinese BEE standard to one of the best practices in the world coupled with the state-of-the-art energy supply system implies an abatement cost at 16US$/tCO₂, which is compatible with the international carbon market price. The institutional reorganization turns out to be indispensable to facilitate the implementation of the proposed scheme of local government-led energy efficiency programme in the form of programmatic CDM in China’s buildings sector. We show that with international support such as carbon finance, the BEE improvement will facilitate city’s transition to low-carbon supply in the longer term. More importantly, it is argued that demand-side energy performance improvement in buildings should be considered a prerequisite to shifting low-carbon energy supply technologies such as fuel-switching, renewable power generation and Carbon Capture and Storage to address climate mitigation in light of cost-effectiveness and environmental integrity.     

China’s national carbon emissions trading scheme: lessons from the pilot emission trading schemes,academic literature,and known policy details

Upon completion, China’s national emissions trading scheme (C-ETS) will be the largest carbon market in the world. Recent research has evaluated China’s seven pilot ETSs launched from 2013 on, and academic literature on design aspects of the C-ETS abounds. Yet little is known about the specific details of the upcoming C-ETS. This article combines currently understood details of China’s national carbon market with lessons learned in the pilot schemes as well as from the academic literature. Our review follows the taxonomy of Emissions Trading in Practice: A Handbook on Design and Implementation (Partnership for Market Readiness & International Carbon Action Partnership. (2016). Retrieved from www.worldbank.org): The 10 categories are: scope, cap, distribution of allowances, use of offsets, temporal flexibility, price predictability, compliance and oversight, stakeholder engagement and capacity building, linking, implementation and improvements.

Key policy insights

• Accurate emissions data is paramount for both design and implementation, and its availability dictates the scope of the C-ETS.

• The stakeholder consultative process is critical for effective design, and China is able to build on its extensive experience through the pilot ETSs.

• Current policies and positions on intensity targets and Clean Development Mechanism (CDM) credits constrain the market design of the C-ETS.

• Most critical is the nature of the cap. The currently discussed rate-based cap with ex post adjustment is risky. Instead, an absolute, mass-based emissions cap coupled with the conditional use of permits would allow China to maintain flexibility in the carbon market while ensuring a limit on CO₂ emissions.

     

Ex-post cap adjustment for China’s ETS: an applicable indexation rule,simulating the Hubei ETS,and implications for a national scheme

China plans to launch its nationwide Emissions Trading Scheme (ETS) in 2017. Uncertainty in China’s future economic growth rate and its effect on underlying emissions may need to be addressed to ensure stability of the scheme. This article investigates an ex-post cap adjustment mechanism for China’s ETS. An applicable rule for indexation of emissions targets to gross domestic product (GDP) adjustment is presented. Such an ex-post optimal emissions intensity target is estimated in an empirical simulation of the Hubei ETS, a large pilot scheme in a fast-growing Chinese province. And its implications for China’s planned national ETS have been discussed. The article finds that by correcting the emissions cap for the difference between expected and realized GDP, the ex-post adjustment can minimize the abatement costs. It can also limit the influence of uncertainties, as it minimizes the standard deviation of realized abatement, abatement cost, and allowance price for a given expected emissions reduction. In addition, with a limited number of parameters requiring estimation, the ex-post cap adjustment mechanism is feasible. It is consistent with the anticipated design of China’s planned national ETS and could be used alongside other design options such as price corridors.

POLICY RELEVANCE

It will be important for the stability of China’s planned national ETS to address uncertainty about future GDP growth which can significantly affect underlying emissions growth. This paper proposes a specific solution, namely an ex-post cap adjustment mechanism for the ETS cap. This method provides flexibility with transparent rules, would be consistent with China’s overall ETS policy design, and could be implemented in practice as the required parameters can be readily estimated.     

Stern’s Review and Adam’s fallacy

The Stern Review has played an enormous role in making the world of business aware of the challenge of long-term climate change. In order to make real progress on the basis of this awareness, it is important to pay attention to the difference between human suffering and losses of gross domestic product (GDP). The Review has compared climate change to experiences of suffering like World War I. That war, however, hardly affected global GDP. The long-term damages to be expected from business-as-usual greenhouse gas emissions include loss of the coastal cities of the world over the next millennia. This would be an act of unprecedented barbarism, regardless of whether it would slow down economic growth or perhaps even accelerate it. Business leaders worried about climate change need to pay attention to the tensions between ethical and economic concerns. Otherwise, a credibility crisis threatens global climate policy. An important step to establish the credibility needed for effective climate policy will be to gradually move towards a regime where emission permits are auctioned, not handed out as hidden subsidies. The revenues generated by permit auctions should be used to establish a global system of regional climate funds.     

Past and future carbon sequestration benefits of China’s grain for green program

Carbon sequestration through ecological restoration programs is an increasingly important option to reduce the rise of atmospheric carbon dioxide concentration. China’s Grain for Green Program (GGP) is likely the largest centrally organized land-use change program in human history and yet its carbon sequestration benefit has yet to be systematically assessed. Here we used seven empirical/statistical equations of forest biomass carbon sequestration and five soil carbon change models to estimate the total and decadal carbon sequestration potentials of the GGP during 1999–2050, including changes in four carbon pools: aboveground biomass, roots, forest floor and soil organic carbon. The results showed that the total carbon stock in the GGP-affected areas was 682 Tg C in 2010 and the accumulative carbon sink estimates induced by the GGP would be 1697, 2635, 3438 and 4115 Tg C for 2020, 2030, 2040 and 2050, respectively. Overall, the carbon sequestration capacity of the GGP can offset about 3%–5% of China’s annual carbon emissions (calculated using 2010 emissions) and about 1% of the global carbon emissions. Afforestation by the GGP contributed about 25% of biomass carbon sinks in global carbon sequestration in 2000–2010. The results suggest that large-scale ecological restoration programs such as afforestation and reforestation could help to enhance global carbon sinks, which may shed new light on the carbon sequestration benefits of such programs in China and also in other regions.     

Assessing protected area’s carbon stocks and ecological structure at regional-scale using GEDI lidar

Protected areas (PAs) serve as a critical strategy for protecting natural resources, conserving biodiversity, and mitigating climate change. While there is a critical need to guide area-based conservation efforts, a systematic assessment of PA effectiveness for storing carbon stocks has not been possible due to the lack of globally consistent forest biomass data. In this study, we present a new methodology utilizing forest structural information and aboveground biomass density (AGBD) obtained from the Global Ecosystem Dynamics Investigation (GEDI) mission. We compare PAs with similar, unprotected forests obtained through statistical matching to assess differences in carbon storage and forest structure. We also assess matching outcomes for a robust and minimally biased way to quantify PA efficacy. We find that all analyzed PAs in Tanzania possess higher biomass densities than their unprotected counterfactuals (24.4% higher on average). This is also true for other forest structure metrics, including tree height, canopy cover, and plant area index (PAI). We also find that community-governed PAs are the most effective category of PAs at preserving forest structure and AGBD – often outperforming those managed by international or national entities. In addition, PAs designated under more than one entity perform better than the PAs with a single designation, especially those with multiple international designations. Finally, our findings suggest that smaller PAs may be more effective for conservation, depending on levels of connectivity. Taken together, these findings support the designation of PAs as an effective means for forest management with considerable potential to protect forest ecosystems and achieve long-term climate goals.     

Drivers of change in Brazil’s carbon dioxide emissions

Brazil’s economic development has been underpinned by a diverse and – in a global comparison – unusual set of energy carriers, notably hydroelectricity and ethanol from sugar cane. Its energy mix makes Brazil one of the least energy-related carbon-intensive economies worldwide. Given that the country is fast becoming one of the world’s economic powerhouses, decision-makers need to understand the drivers underlying past and current carbon dioxide emissions trends. We therefore investigate a) which key long-term drivers have led to Brazil’s unique emissions profile, and b) the implications of these drivers for Brazil’s national policies. We show that Brazil’s emissions are growing mainly due to increasing individual standards of living, exports and population size, and that this growth is so far unchallenged by technological and structural improvements toward lower emissions intensities and more efficient production structures. As these trends are likely to continue amidst growing international pressure on key economies to reduce their carbon emissions, a decoupling of drivers from emissions is needed to simultaneously meet development and environmental goals.     

Applying personal carbon trading: a proposed ‘Carbon,Health and Savings System’ for British Columbia,Canada

Addressing climate change requires the synergy of technological, behavioural and market mechanisms. This article proposes a policy framework that integrates the three, deploying personal carbon trading as a key element within a policy portfolio to reduce personal carbon footprints. It draws on policy and human motivation literatures that address the behavioural changes that may be needed in the context of a long-term threat such as climate change. This proposal builds on an analysis of the British Columbia carbon tax, international examples of carbon pricing instruments and strategies for behavioural change such as social networks, loyalty management, mobile apps and gamification. Interviews were conducted with experts in financial services, energy conservation and clean technology, as well as with specialists in climate, health and taxation policy. Their input, together with a review of the theoretical literature and practical case studies, informed the proposed design of a Carbon, Health and Saving System for promoting individual engagement and collective action by linking long-term climate mitigation measures with short-term personal and social goals, including health, recreation and social reinforcement.

Policy Relevance

This article identifies areas for climate policy innovation and recommends policies that can support, promote and enable personal carbon budgeting and collective action. Although this study is focused on British Columbia, both the input provided by key opinion leaders and the proposed framework are applicable to other jurisdictions.

This policy proposal shows how personal carbon trading could work in the context of a Canadian province with an existing climate mitigation policy. It also specifies a minimum viable product approach to establishing the economic, social and technological foundations for personal carbon trading.

The Carbon, Health and Saving System identifies the technologies and stakeholders needed to implement personal carbon trading, and offers the possibility of motivating a widespread conscious human response in the event that carbon taxation proves insufficient to generate economic adaptation in a changing climate.     

Mass-media coverage,its influence on public awareness of climate-change issues,and implications for Japan’s national campaign to reduce greenhouse gas emissions

We analyse Japanese newspaper coverage of global warming from January 1998 to July 2007 and how public opinion during parts of that period were influenced by newspaper coverage. We show that a dramatic increase in newspaper coverage of global warming from January 2007 correlated with an increase in public concern for the issue. Before January 2007, we find that coverage of global warming had an immediate but short-term influence on public concern. With such transitory high levels of media coverage we suggest that for more effective communication of climate change, strategies aimed at maintaining mass-media coverage of global warming are required.     

‘Low carbon’ metals, markets and metaphors: the creation of economic expectations about climate change mitigation

Dealing with the threat of anthropogenic climate change has been a challenge for policy makers for a long time. In recent years, the problems posed by climate change and solutions proposed to mitigate its effects have been framed by lexical ‘carbon compounds’, such as carbon footprint or carbon trading and by one dominant metaphor, the market metaphor. Through a detailed content analysis of industry and press coverage from 1985 to the present, this paper examines the fate of one important lexical compound in this context, namely low carbon, which can be used as an adjective or a noun. Over the last two decades this lexical compound moved across and between three discourses, the steel industry, the car industry and what one might call the climate change industry. Using insights from ecolinguistics and the sociology of expectations, the paper discusses how the lexical compound low carbon in general and the metaphor low carbon future in particular came to prominence in policy discourses, especially in the UK, and how they were used to frame expectations of a prosperous low carbon future, while sidelining deeper social and cultural reflections on climate change mitigation.     

Comparative estimates of influence of changes in carbon dioxide,methane, nitrous oxide,and water vapor concentrations on radiation-equilibrium temperature of Earth’s surface

This paper deals with direct calculations of the radiation-equilibrium temperature profile in the Earth’s atmosphere from experimental spectroscopic data. The calculations are made for its present composition and for the modified ones, when concentration of a gas, namely, one of carbon dioxide CO₂, methane CH₄, nitrous oxide N₂O or water vapor H₂O is changed. Calculations were carried out with one-dimensional (horizontally homogeneous) radiation model proceeding from the values of absorption coefficients of atmospheric layers estimated from actual data. Calculations are carried out for small disturbances of the said gases’concentrations. Approximate estimates of large disturbance were made for the cases of total withdrawal of concrete gas from the atmosphere or, on the contrary, of large increase in its concentration.     

Atmospheric electricity and earth’s microseisms

Increase in the amplitudes of microseisms within the range from the tenths of hertz to 10 kHz leads to increase in the values of air polar conductivity and to decrease in atmospheric electric field. As the frequency of microseisms decreases, the efficiency of microseismic impact increases. In case of low amplitudes of microseisms, decrease in atmospheric electric field is observed only as a result of multimonth active impact on the geologic environment.     

Estimation of global temperature trends: what’s important and what isn’t

In this essay we discuss the development of and estimation of uncertainties in the global surface temperature record. We briefly discuss the similarities in and differences between the records from the institutions that produce such series. We then consider the numerous issues that must be addressed to enable accurate estimates to be derived. We consider these in their order of importance with respect to the record: biases in the sea surface temperature data, exposure of land-based thermometers before about 1900, urbanization effects in some series, and, finally, the homogeneity of individual land-based records.     

Changes in soil organic carbon stocks as affected by cropping systems and cropping duration in China’s paddy fields: a meta-analysis

Great uncertainties remain in the impact of cropping systems on soil organic carbon (SOC) stocks in paddy fields that hold a large potential for carbon (C) sequestration. In this study, a meta-analysis was performed to examine trends on SOC stocks in unfertilized and fertilized fields from three of the most common rice cropping systems in China. Results showed that rice cropping without any nutrient application (Control) significantly increased SOC stocks by 9% compared to the initial level in double rice cropping systems (DR), whereas no significant effects were observed in single rice cropping systems (SR) and rice-upland crop rotation systems (RU). Paddy soils sequestered C in all the three cropping systems under inorganic NPK fertilization, and the magnitude of the increase in SOC stocks was in the order DR > RU > SR. Soil C stocks increased with the increasing cropping duration. Continuous rice cropping for more than 20?years led to average SOC gains of 15% and 23% in the control and NPK treatments, respectively. Furthermore, it seems that C sequestration was still occurring in the longest fields from the included studies. Thus, no SOC saturation trend was found over the investigated cropping duration. However, the negative relationship between SOC changes and their initial C stocks suggests indirectly the possibility of SOC saturation in paddy fields.     

California’s local health agencies and the state’s climate adaptation strategy

A changing climate will exacerbate many of the problems currently faced by California’s public health institutions. The public health impacts of climate change include: an increase in extreme heat events and associated increases in heat-related morbidity and mortality, increases in the frequency and severity of air pollution episodes, shifts in the range and incidence of vector-borne diseases, increases in the severity of wildfire, increased risks of drought and flooding, and other extreme events. This article assesses the readiness of California’s public health institutions to cope with the changes that will accompany a changing climate and how they relate to strategies laid out in the state’s Climate Adaptation Strategy. County-level health offices are the front line actors to preserve public health in the face of numerous threats, including climate change. Survey results show that local health officers in California believe that climate change is a serious threat to public health, but feel that they lack the funding and resources to reduce this risk. Local health agencies also have a number of tools in place that will be helpful for preparing for a changing climate.     

Early warnings and emerging accountability: Total’s responses to global warming, 1971–2021

Building upon recent work on other major fossil fuel companies, we report new archival research and primary source interviews describing how Total responded to evolving climate science and policy in the last 50 years. We show that Total personnel received warnings of the potential for catastrophic global warming from its products by 1971, became more fully informed of the issue in the 1980s, began promoting doubt regarding the scientific basis for global warming by the late 1980s, and ultimately settled on a position in the late 1990s of publicly accepting climate science while promoting policy delay or policies peripheral to fossil fuel control. Additionally, we find that Exxon, through the International Petroleum Industry Environmental Conservation Association (IPIECA), coordinated an international campaign to dispute climate science and weaken international climate policy, beginning in the 1980s. This represents one of the first longitudinal studies of a major fossil fuel company’s responses to global warming to the present, describing historical stages of awareness, preparation, denial, and delay.     

Mapping and clustering the adoption of carbon pricing policies: what polities price carbon and why?

Carbon pricing, including carbon taxes and emissions trading, has been adopted by different kinds of polities worldwide. Yet, beyond the increasing adoption over time, little is known about what polities – countries as well as sub- and supranational entities – adopt carbon pricing and why. This paper explores patterns of adoption (both implemented policies and those scheduled to be) through cluster analysis, with the purpose of investigating factors that could explain polities’ decisions to adopt carbon pricing. The study contributes empirically by studying carbon taxes and emissions trading together and by ordering the polities adopting carbon pricing into clusters. It also contributes theoretically, by exploring constellations of variables that drive the adoption of carbon pricing within individual clusters. We investigated 66 adopted policies of carbon pricing, which were divided into five clusters: early adopters, North-American subnational entities, Chinese pilot provinces, second-wave developed polities, and second-wave developing polities. The analysis indicates that the reasons for adopting carbon pricing have shifted over time. While international factors (climate commitments or influences from polities within the same region) are increasingly salient, domestic factors (including crises and income levels) were more important for the early adopters.

Key policy insights

• Carbon pricing has become a global mainstream policy instrument.

• Economic and fiscal crises provide windows of opportunity for promoting carbon pricing.

• The international climate regime can support the adoption of carbon pricing through mitigation commitments and international financial and technical assistance.

• Learning between polities from the same region is a useful tool for promoting carbon pricing.

• Carbon intensive economies tend to prefer emissions trading over carbon taxes.