Chapter 14
Achievement of Nationally Determined
Contributions (NDCs) Through Emissions
Trading in China, Japan, and South Korea
Xuanming Su and Weisheng Zhou
Abstract Carbon emissions trading is a market-based approach used to lower
abatement costs for both sellers and purchasers of carbon. By simulating a scenario
in which emissions trading takes place among China, Japan, and Korea in a
low-carbon community, this chapter explores the possible impact of carbon emissions trading. The results show that developed countries, such as Japan and Korea,
and developing countries, like China, can lower their total abatement costs through
carbon trading, considering the costs of buying and selling carbon credits.
14.1 Introduction
The Paris Agreement adopted in 2015 aims to restrict global warming to 1.5–2
C
above pre-industrial levels by the end of this century. To achieve this target, the Paris
Agreement requires each Party to outline their post-2020 climate actions, which are
known as nationally determined contributions (NDCs). An important part of the
global economy, China, Japan, and South Korea account for approximately 23.5%
of global gross domestic product (GDP) (The World Bank 2020, calculated using
current USD). They exhibit different levels of socioeconomic development: China is
currently a developing country, Japan is a mature developed country, and South
Korea can be considered semi-developed. These three countries can play an important role in addressing climate change. Under the Paris Agreement, China has
pledged to reach peak carbon dioxide emissions by 2030 and to lower CO 2 emissions per unit of GDP by 60–65% from 2005 levels. Japan plans to reduce
X. Su
Research Institute for Global Change/Research Center for Environmental Modeling and
Application/Earth System Model Development and Application Group, Japan Agency for
Marine-Earth Science and Technology (JAMSTEC), Yokohama, Japan
e-mail: suxuanming@jamstec.go.jp
W. Zhou (*)
College of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: zhou@sps.ritsumei.ac.jp
© Springer Nature Singapore Pte Ltd. 2021
W. Zhou et al. (eds.), East Asian Low-Carbon Community,
https://doi.org/10.1007/978-981-33-4339-9_14
263
Achievement of Nationally Determined
Contributions (NDCs) Through Emissions
Trading in China, Japan, and South Korea
Xuanming Su and Weisheng Zhou
Abstract Carbon emissions trading is a market-based approach used to lower
abatement costs for both sellers and purchasers of carbon. By simulating a scenario
in which emissions trading takes place among China, Japan, and Korea in a
low-carbon community, this chapter explores the possible impact of carbon emissions trading. The results show that developed countries, such as Japan and Korea,
and developing countries, like China, can lower their total abatement costs through
carbon trading, considering the costs of buying and selling carbon credits.
14.1 Introduction
The Paris Agreement adopted in 2015 aims to restrict global warming to 1.5–2
C
above pre-industrial levels by the end of this century. To achieve this target, the Paris
Agreement requires each Party to outline their post-2020 climate actions, which are
known as nationally determined contributions (NDCs). An important part of the
global economy, China, Japan, and South Korea account for approximately 23.5%
of global gross domestic product (GDP) (The World Bank 2020, calculated using
current USD). They exhibit different levels of socioeconomic development: China is
currently a developing country, Japan is a mature developed country, and South
Korea can be considered semi-developed. These three countries can play an important role in addressing climate change. Under the Paris Agreement, China has
pledged to reach peak carbon dioxide emissions by 2030 and to lower CO 2 emissions per unit of GDP by 60–65% from 2005 levels. Japan plans to reduce
X. Su
Research Institute for Global Change/Research Center for Environmental Modeling and
Application/Earth System Model Development and Application Group, Japan Agency for
Marine-Earth Science and Technology (JAMSTEC), Yokohama, Japan
e-mail: suxuanming@jamstec.go.jp
W. Zhou (*)
College of Policy Science, Ritsumeikan University, Ibaraki, Osaka, Japan
e-mail: zhou@sps.ritsumei.ac.jp
© Springer Nature Singapore Pte Ltd. 2021
W. Zhou et al. (eds.), East Asian Low-Carbon Community,
https://doi.org/10.1007/978-981-33-4339-9_14
263