Kasey Dresser | December 26, 2017
Cap and trade is a government based program that controls the amount of carbon emissions that a company is allowed to emit. The company buys a permit that allows them to release a specific amount.
California, and parts of Canada and the UK already have cap and trade programs set up. China met with Governor Jerry Brown over the summer to discuss China’s carbon markets. Since the start of the cap and trade program in 2012, California has raised $4.4 billion by selling credits. The plan is to have greenhouse gas emissions cut by 80% in 2050. The program has also created more local jobs. This progress is an example not only for states but more countries too.
The first steps in China’s cap and trade program will cover the electricity industry. This will focus on reducing coal-fire based energy. Later the program will expand to transportation and industrial sectors. Forbes predicted that if China can get the price of carbon to $10 on the national market and keep it there, they can eliminate a quarter of their emissions by 2030.
The United States and China are responsible for 42% of the world’s greenhouse gas emissions. President Xi’s actions have committed himself to the Paris Climate Change Agreement and since the United States has pulled support, he has pledged to have a larger international leadership position.