Posted by: Dr Churchill | June 20, 2013

China’s losing battle for Clean Air gets a new breath thanks to Mr Xi

China’s new premier has made it a priority to clean up house.

He has started by rooting out corruption and bringing on transparency and now he has undertaken the most dynamic change in favour of the PEOPLE of China.

He has launched the CLEAN UP of the AIR and of the Environment in China. The first  ever such action. And as this is a market failure, he uses rather appropriate Market mechanisms to CLEAN UP THE AIR.

Bravo Mr President. Well Done. More is expected of you than all your predecessors combined. Thank You….

Clean Air is now a priority.

But how to achieve this without hampering the economic progress and development is a Big Question and the overriding concern that didn’t allow previous leaders to address this issue.

Yet Mr Xi being a savvy engineer form Tsinghua University of Beijing has got the smarts to understand the road to solutions. And it comes from the Environmental parliament proposals the previous President had received personally from yours truly.

Namely: Put a Price on Carbon and thus shift the cost to the Polluters from Society at large. Gradually in the beginning and escalating until the polluters pay for the whole damage they cause.

Now these words have come to be the LAW in China.

The first Carbon market has been enacted and is already up and running to place a cost to the polluters per ton of carbon and to slowly phase out coal from the Energy and electricity generation sector.

I see a new Five year plan to clean up the air and am liking it loads… because Shenzhen, in South China’s Guangdong province, launched a carbon trading scheme on Tuesday, the country’s first market for compulsory carbon trading. The scheme covers 635 industrial companies and some public buildings that account for about 40 percent of the city’s carbon emissions, the Shenzhen carbon trade exchange said in a statement. Under the trading program, those which emit below their quotas could sell their excess limits to other emitters and even investors for profit.

The carbon intensity, or the amount of carbon produced per unit of gross domestic product, of the 635 industrial companies in 2015, will slump 32 percent from levels in 2010, the statement said.

Eight deals, or 21,112-ton carbon quotas, were traded Tuesday at prices ranging from 28 to 32 yuan ($5.2) per ton.

A humble beginning, yet all great Oaks started from the tiniest of acorns. And here is the proof as China’s National Development and Reform Commission, the top economic planning agency, also approved pilot carbon emission trading schemes in six other areas: Beijing, Tianjin, Shanghai, Chongqing, Hubei and Guangdong.

Experts and government officials hailed the pilot schemes as a landmark step for China in building a nationwide carbon emission trading market.

The country has pledged to reduce carbon dioxide emissions 40 to 45 percent per unit of GDP by 2020, in comparison with 2005.


Maybe is no Coincidence that when I spoke with the new President of China, Mr Xi at the graduation ceremony of my Innovation Master Class in Tsinghua University this year — he was rather attentive when I said that to clean up the air and the water of China, He must use the strong economic levers of Market Mechanisms and thus place the full costs on the polluters.

Well Done

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