By BusinessGreen staff

Finance minister Lou Jiwei says tax on CO2 will be introduced ‘in due time’ as country seeks to curb rising emissions

China’s strategy for combating climate change will at some point include a tax on greenhouse gas emissions, according to the country’s finance minister.

Lou Jiwei told delegates at China-US Strategic and Economic Dialogue last week that China would expand environmental taxes to include carbon “in due time”, according to news agency Thomson Reuters Point Carbon.

The annoucement follows the publication of a document earlier this year by the Ministry of Finance detailing a new tax regime designed to help protect the environment that includes CO2 and sewage charges.

As part of its drive to curb emissions, China last month began a carbon trading pilot programme that will see seven zones launch compulsory cap and trade schemes. Starting last month with the southern city of Shenzhen, the pilot will also cover Beijing, Tianjin, Shanghai, Chongqing, Hubei and Guangdong.

The new city-wide markets are widely expected to provide the foundations for a national carbon market that will play a critical role in ensuring the country meets its voluntary target to reduce its carbon intensity 45 per cent by 2020.

However, it remains unclear how a carbon tax could work alongside cap and trade scheme. One option would be to exclude firms that take part in the carbon markets from the national tax.

For more on this story go to:

http://www.businessgreen.com/bg/news/2283869/chinese-minister-confirms-carbon-tax-is-on-its-way

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UN carbon offset scheme cruises to the Caribbean

By BusinessGreen staff

New centre in Grenada aims to expand Clean Development Mechanism schemes in the region

The United Nations Framework Convention on Climate Change (UNFCCC) is to work with a Caribbean non-profit organisation to boost the region’s participation in the UN carbon offset scheme, the Clean Development Mechanism (CDM)

The partnership with the Windward Islands Research and Education Foundation (WINDREF) is the third such collaboration centre to be established, following the launch of centres in the Togo capital Lomé and Kampala in Uganda which are designed to drive interest in francophone and English-speaking African countries respectively.

The CDM has more than 7,000 accredited projects in 88 countries developing countries, including 18 projects in the Caribbean, 12 of which are in the Dominican Republic.

Each project generates tradable offset credits known as Certified Emissions Reductions (CERs) that developed nations and companies can purchase to help meet their emissions reduction commitments under the Kyoto Protocol.

However, the price of these allowances has plummeted in recent years, prompting the UN to call for more ambitious emissions targets to drive demand.

Meanwhile, the scheme has also been undermined by concerns over whether some projects are delivering promised emission reductions and whether smaller countries can access the scheme.

Analysts warn that producing more credits will drive prices down further, but the UNFCCC argues that expanding the CDM’s reach will offer opportunities to reduce emissions in a cost-effective way and address climate change in countries that are facing potentially severe climate impacts.

Peer Stiansen, chairman of the CDM executive board, said: “The centre in Grenada will focus on the needs of the Caribbean Region in an effort to make it an increasingly attractive destination for CDM projects.”

For more on this story go to:

http://www.businessgreen.com/bg/news/2284887/un-carbon-offset-scheme-cruises-to-the-caribbean