Supporting China National Carbon Market With Effective MRV For GHG Databy -
As the largest greenhouse gas emitter, China has made many pragmatic efforts in emission reduction in recent years, the most influential of which is “to establish a national carbon emission trading market (“carbon market” for short) and reduce emission through the market”. Against this background, World Resources Institute(WRI)cooperated with National Center for Climate Change Strategy and International Cooperation (NCSC),based on studying of China’s carbon market and international experiences on MRV management, put forward challenges for China to build MRV system and also offered constructive recommendations.
In the building of this carbon market, quality greenhouse gas emission data is the basis, thus precise calculation and report of greenhouse gas emission will be a key job. Against this background, China needs to establish a measurable, reportable and verifiable greenhouse gas emission data management mechanism (here referred to as MRV system). The MRV system is composed of monitoring, reporting and verification. The three main functions of MRV management system are: 1) supporting formulation of relevant policies and regulations on carbon market; 2) improving greenhouse gas emission data’s quality; 3) supporting enterprises’ management of carbon asset. Though China has accumulated some experience in carbon market building, the MRV system building for the national carbon market will encounter multiple challenges, including the to-be-strengthened MRV policy, laws, regulations and management system, to-be-improved technology support system, lack of sufficient fund support and capacity building and the balance between instructions and market management for third-party verification institutions. To meet these challenges, it is significant for China to learn from international experience of MRV system building for carbon market, especially management experience of MRV in EU carbon trading system and date management experience of the US greenhouse gas emission reporting system. The MRV system building for China’s carbon market is a complicated project. The national carbon market to be launched in 2017 makes the MRV management system building more urgent and indispensable. Tasks and recommendations for the MRV management system building are as follows. 1) Improve the top design of MRV system. 2) Specify and improve the technology support system. 3) Increase fund support and build sustainable capacity. Currently, China is trialing carbon trading, designing and building a national carbon market mechanism. Seven pilot carbon markets have been established in Beijing, Tianjin, Shanghai, Chongqing, Hubei, Guangdong and Shenzhen. Once the carbon market is accomplished, China is expected to be the biggest carbon market in the world.