3 Low-Carbon Transition (Peaking) of Chinese Cities: The Case …
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59.63 yuan/ton (the highest out of 7 pilots). The price had shown a stable trajectory,
indicating balanced supply and demand.
3.3.1.2 Creation of a Top-Down Legislative Framework
In designing the carbon emission trading system, Beijing has taken the following
principles into account: first, it should accommodate the urgent need of environment improvement in Beijing and the whole country to synergize with policies of
environmental goverance. Second, harness the local legislative power of Beijing to
galvanize local people’s congress to pass the “Decisions of the Standing Committee
of the National People’s Congress”, providing legal basis for carbon emission trading.
Third, a two-pronged approach should be adopted for the legislation, meaning that
legal basis set up by local people’s congress should be complemented by “management measures” issued by local governments to clarify key elements in legislation.
Fourth, competent authorities should formulate documents to identify the procedures and timetable for implementation. Beijing did exactly the same by taking the
following two steps. For starters, it passed “decisions” to provide legal safeguard for
carbon emission trading pilot in Beijing, which was then followed by the issuance
of “regulation” through local government to offer a reliable legal safety net for the
healthy development of carbon emission trading in the city.
Beijing has put in place a two-tiered legislation model featured by a blend of
“decisions” passed by local people’s congress and “management measures” issued
by local government, which represents the ideal legislative approach. For one thing,
“decisions” of local people’s congress helps identify carbon emission permit, set up
a framework of emission control and trading, and strengthen the effectiveness of
penalty. For another, “management measures” drafted by local government further
define the process and procedures of trading.
Beijing has been at the forefront of capping carbon emissions and spearheaded
the “cap-and-trade” scheme, which were stipulated in the “decisions” of the local
people’s congress and the “implementation plan” of carbon emissions trading.
3.3.1.3 The Fusion of “Visible Hands” and “Invisible Hands”
1. Fully accommodate the need of transferring non-capital functions of Beijing and
reasonably determine the coverage of control.
The emission allowance allocation methods comprise “grandfathering”, “historical intensity” and “benchmarking”, the choice of which determines the incentive
recipient of the emissions trading policy. Currently, carbon market in Beijing
applies a mixture of the three approaches, using “grandfathering” for manufacturing and service, “historical intensity” for heating suppliers, and “benchmarking” for power suppliers and new facilities. The allowance is allocated to
producers and suppliers (organizations) of heat and power, manufacturers, mining
enterprises and service providers (organizations) due to the reasons below:
83
59.63 yuan/ton (the highest out of 7 pilots). The price had shown a stable trajectory,
indicating balanced supply and demand.
3.3.1.2 Creation of a Top-Down Legislative Framework
In designing the carbon emission trading system, Beijing has taken the following
principles into account: first, it should accommodate the urgent need of environment improvement in Beijing and the whole country to synergize with policies of
environmental goverance. Second, harness the local legislative power of Beijing to
galvanize local people’s congress to pass the “Decisions of the Standing Committee
of the National People’s Congress”, providing legal basis for carbon emission trading.
Third, a two-pronged approach should be adopted for the legislation, meaning that
legal basis set up by local people’s congress should be complemented by “management measures” issued by local governments to clarify key elements in legislation.
Fourth, competent authorities should formulate documents to identify the procedures and timetable for implementation. Beijing did exactly the same by taking the
following two steps. For starters, it passed “decisions” to provide legal safeguard for
carbon emission trading pilot in Beijing, which was then followed by the issuance
of “regulation” through local government to offer a reliable legal safety net for the
healthy development of carbon emission trading in the city.
Beijing has put in place a two-tiered legislation model featured by a blend of
“decisions” passed by local people’s congress and “management measures” issued
by local government, which represents the ideal legislative approach. For one thing,
“decisions” of local people’s congress helps identify carbon emission permit, set up
a framework of emission control and trading, and strengthen the effectiveness of
penalty. For another, “management measures” drafted by local government further
define the process and procedures of trading.
Beijing has been at the forefront of capping carbon emissions and spearheaded
the “cap-and-trade” scheme, which were stipulated in the “decisions” of the local
people’s congress and the “implementation plan” of carbon emissions trading.
3.3.1.3 The Fusion of “Visible Hands” and “Invisible Hands”
1. Fully accommodate the need of transferring non-capital functions of Beijing and
reasonably determine the coverage of control.
The emission allowance allocation methods comprise “grandfathering”, “historical intensity” and “benchmarking”, the choice of which determines the incentive
recipient of the emissions trading policy. Currently, carbon market in Beijing
applies a mixture of the three approaches, using “grandfathering” for manufacturing and service, “historical intensity” for heating suppliers, and “benchmarking” for power suppliers and new facilities. The allowance is allocated to
producers and suppliers (organizations) of heat and power, manufacturers, mining
enterprises and service providers (organizations) due to the reasons below: