Abby L. Harvey
GHG Monitor
9/25/2015
Chinese President Xi Jinping on Friday announced that his nation will have a national cap-and-trade system in place by 2017. The emissions trading system, announced during Xi’s visit to the White House to meet with President Barack Obama, will be wide-reaching, covering key industry sectors such as iron and steel, power generation, chemicals, building materials, paper manufacturing, and nonferrous metals.
“When the world’s two largest economies, energy consumers and carbon emitters come together like this, then there is no reason for other countries, whether developed or developing, to not do so as well, and so this is another major step towards the global agreement the world needs to reach in two months’ time,” Obama said at a joint press conference with Xi.
In the U.S.-China Joint Presidential Statement on Climate Change, China has also committed to lowering carbon dioxide emissions per unit of GDP by 60 percent to 65 percent from the 2005 level and increasing the forest stock volume by about 4.5 billion cubic meters from the 2005 level by 2030. China also committed to promoting green power dispatch, giving priority, in distribution and dispatching, to renewable power generation and fossil fuel power generation of higher efficiency and lower emission levels.
The U.S. also made commitments in the statement, including a pledge to finalize in 2016 the Environmental Protection Agency’s proposed federal implementation plan under the recently finalized carbon emissions standards for existing coal-fired power plants. The carbon emissions standards require states to create action plans to meet federally set emissions reduction goals. If a state does not submit its own implementation plan, a federal implementation plan will be enforced. That federal implementation plan is currently in draft form after being proposed in early August.
Update on CCUS Efforts Provided
The two countries also provided an update on efforts to conduct research into the use of captured carbon for enhanced oil recovery. A joint project, to be hosted by China, was announced as a portion of a joint presidential announcement in 2014.
According to a White House statement on Friday’s announcement, “the two countries have identified the project site in Yan’an-Yulin, Shan’xi Province, China, operated by Shan’xi Yanchang Petroleum. The two sides will continue to collaborate to demonstrate the utilization of CO2 for enhanced water recovery.”
Countries Reaffirm Support for Strong Paris Agreement
Friday’s announcement comes less than 70 days before the kick-off of the 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change in Paris. It is hoped that negotiations at COP21 will result in the adoption of a new global climate deal.
“We have agreed to expand bilateral practical cooperation, strengthen coordination in multi-lateral negotiation, and work together to push the Paris Climate Change Conference to produce important progress,” Xi said during the press conference.
In the new joint presidential statement, Xi and Obama reaffirmed their commitment to developing an ambitious climate deal at COP21 “that reflects the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances.” The statement adds: “Both sides support the inclusion in the Paris outcome of an enhanced transparency system to build mutual trust and confidence and promote effective implementation including through reporting and review of action and support in an appropriate manner. It should provide flexibility to those developing countries that need it in light of their capacities.”
