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2010-05-30

China in action for reducing emissions

Comments on Huw Slater “Why China could be leading the world on climate change”, http://www.eastasiaforum.org/2010/05/29/why-china-could-be-leading-the-world-on-climate-change/

There are, however, a number of points.

Firstly, it seems unclear or confusing to what really China's strategy and tactics at Copenhagen, with different parties claiming different things. The outcome of the meeting is clear, but the real causes are not.

Secondly, there are, of course, unfortunate consequences following Copenhagen, as reflected in delays in actions in some countries.

Thirdly, if Slater is right in that China is introducing a carbon tax, there are implications for both China and other countries.

Carbon tax is the most efficient and transparent instrument to reduce emissions if it applies to all carbon sources or uses. If China is to adopt such a tax, it is in the right direction.

Due to its transparency, it can also send a much clearer and more irrefutable signal other countries in terms of its action in climate change and emissions reduction.

The point is that China, as a developing country, is moving fast in combating climate change.

It would lay an interesting foundation for future emission reductions work, such as what had also been talked about as carbon leakage by some other countries. A carbon tax is better in understanding that leakage than administrative measures.

I should add that an integral issue associated with carbon leakage is international equity in emissions and their reductions.

The most equitable solution is equal emission right or quota allocation and then each pay for their emissions and everyone has the same entitlement to the global revenue from that. But we are a long way from that principle yet.

That issue needs very careful and just consideration.

Only when that issue is done properly, the global task of emissions reduction has more chances to succeed.

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