First Chinese Pilot Emissions Trading Scheme Starts in Shenzhen
LONDON, June 18, 2013 /PRNewswire/ --
Today the City of Shenzhen started trading emission rights to reduce its carbon consumption by 21% by 2015. The Shenzhen project is the first of seven trial schemes that will be launched this year as a pilot for nationwide emissions trading scheme (ETS) planned for later this decade.
China, which is one of the countries worst affected by climate change, is targeting a reduction of carbon consumption 17% below 2011 levels by the end of 2015, a first step to reaching the nationwide target of reducing carbon intensity by 40-45% below 2005 levels by 2020.
The selection of market-based mechanisms to regulate carbon use in China re-affirms that emissions trading are the preferred way of regulating greenhouse gas emissions. Other regions are following this example. Australia launched its national ETS in July 2012. California, jointly with Quebec, Canada, followed with the introduction of the world's second largest ETS in early 2013, leaving the EU ETS as the world's largest system with around 2bn tonnes of CO2 covered per year.
"Having one of the lowest gas prices worldwide, the US industry would have a competitive advantage in a world with a global high carbon price," says Jan Frommeyer, director of market analysis at Tschach Solutions, which is now part of ICIS. "This economic reason for the US, combined with China's proactive implementation of carbon reduction policies, is spurring chances for a strong global climate deal in the UN talks in 2015."
ICIS believes that emissions trading will influence energy markets worldwide in the coming years. The recent acquisition by ICIS of Tschach Solutions ensures that ICIS remains at the forefront of these developments.
ICIS is the world's largest petrochemical market information provider and has fast-growing energy and fertilizer divisions. Our aim is to give companies in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions. We have more than 30 years' experience in providing pricing information, news, analysis and consulting to buyers, sellers and analysts.
With a global staff of more than 800, ICIS has employees based in Houston, Washington, New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo and Perth. ICIS is a division of Reed Business Information, part of Reed Elsevier Plc.
About Tschach Solutions
Tschach Solutions was acquired by ICIS in June 2013; the company is a carbon market analytics specialist, based in Karlsruhe, Germany. Employing a team of expert analysts, the company offers a comprehensive portfolio of data, information and analytics products for the carbon market. Products include short- and long-term price forecasts, which combine analysis of market fundamentals, policy and trading behaviour in the EU ETS and the global Clean Development Mechanism (CDM). Tschach Solutions produces a range of data, delivered through online, written report and consulting propositions.
About Reed Business Information
Reed Business Information brings market leading brands to an audience of millions of decision makers worldwide through its multi-platform media of data services, online lead generation services, community websites, magazines and events. Reed Business Information is part of Reed Elsevier, a world leading provider of professional information solutions in the Science, Medical, Legal and Risk and Business sectors.
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SOURCE Tschach Solutions