Case Study - China (EDC) Flashcards
1. What is the Shanghai carbon trading scheme in China?
The Shanghai carbon trading scheme was announced in November 2008 as part of China’s strategy to create a “low carbon civilization.” It enforces a carbon emission trading scheme across the country’s provinces, allowing them to earn money by investing in carbon capture and storage (CCS). Pilot schemes are running in certain sectors and cities, such as cement production in Beijing and Shanghai. In July 2021, China opened a national carbon market in Shanghai, based on a ‘cap and trade’ model. Initially, it covers the power generation sector, which accounts for half of China’s emissions. Each company has emissions allowances and can buy more from more efficient companies if needed.
- What is the ‘Green Wall of China’ and its significance?
The ‘Green Wall of China,’ also known as the Three-North Shelter Forest Program, is a large-scale afforestation project aimed at combating desertification and expanding forest cover. Since the 1970s, China has tripled its forest coverage through this initiative. A law from 1981 mandates that every school student over the age of 11 plants at least one tree per year. Over 35 billion trees have been planted, with nearly all barren hills and wastelands suitable for afforestation covered in 12 out of 23 provinces. This project, referred to as the “world’s largest ecological protection project” by the UN, focuses on converting lumberjacks into forest rangers, implementing a ban on deforestation, and reducing flood risk while enhancing quality of life and biodiversity. The Green Wall of China is part of China’s efforts to achieve carbon neutrality by 2060.
- How does China address its socio-economic challenges in climate change mitigation?
China faces socio-economic challenges in climate change mitigation, including its huge reliance on coal, which accounts for 62% of its energy mix and is cheaper than oil, especially in rural areas that have not fully transitioned to electrification. Despite being a large economy, the country is still undergoing industrialization. Around 20 million people are employed in the fossil fuel industry, creating socio-economic complexities in transitioning to cleaner energy sources.
- What are some technological challenges faced by China in climate change mitigation?
China encounters several technological challenges in climate change mitigation. Meeting the electricity demand of its massive population of 1.4 billion people is challenging, and currently, fossil fuels are the most efficient means of doing so. The country is also approaching its limit in terms of afforestation projects, as it cannot rely solely on tree planting to counterbalance emissions forever. Additionally, the limited supply of lithium for electric vehicles (EVs) poses a challenge, although China, being a major player in lithium supply, has a relatively better position compared to other countries.
- What are the political challenges associated with climate change mitigation in China?
China’s climate change mitigation efforts benefit from the advantage of one-party rule, allowing for top-down decision-making and implementation. However, undertaking mitigation actions on a large scale can also create challenges. Balancing the interests of different regions and sectors, ensuring effective enforcement of policies, and addressing potential resistance or conflicts that may arise due to the magnitude of the initiatives are among the political challenges faced by China.
