Over the past few years, carbon emissions strategy has been a hot topic in mainland China, having featured in President Xi Jinping’s statement in the 'China-US Joint Statement on Climate Change' as well as his speech on the 13th Five-Year Plan. It has also been a focus of the 'G20 Summit and Energy Development Strategy Action Plan'.
The National Development and Reform Commission (NDRC) has released numerous circulars on the topic, including the Circular on the Pilot Launch of the Carbon Emissions Trading System in 2011 which called for the launch of seven pilot provinces/cities designated to conduct carbon emissions trading. In December 2015, close to 200 signatories of the United Nations Framework Convention on Climate Change unanimously consented to adopt the Paris Agreement at the United Nations Climate Change Conference convened in Paris to set long-term goals to tackle the challenges posed by climate change. China’s 13th Five-Year Plan also focuses on the national carbon emissions trading system which will cover 7,000 to 8,000 major enterprises in eight key industries, and which is expected to be formally launched in October 2017.
This publication summarises the work of the six key carbon emissions stakeholders in China – the NDRC, provincial and local governments, carbon trading centres, third-party review organisations, enterprises controlling emissions, and green financial services institutions – to assist companies considering collaborating with other stakeholders. It also looks at how companies can assess the impact of carbon trading on their businesses and the major challenges they might face, as well as how KPMG China’s Business Reporting & Sustainability team can help with upcoming challenges.