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Give market the leading role in low-carbon growth

By Yu Hongyan (chinadaily.com.cn)

2011-05-20 17:46

No matter whether we have turned over the page of the financial crisis, the low-carbon "revolution" has in itself started already, and China should ready itself to catch up, said a researcher in Beijing.

Along with the course of the "revolution", discourse power for products and game rules in this sector is also intensifying, Chen Bingcai, vice director of the Decision-making Advisory Department of the China National School of Administration, said at a press conference Thursday.

What the world's second largest economy should do, in this regard, is to discard its traditional development mode, which is reliant on government administration, and to firmly trust the prowess of the market, Chen said.

He suggested the government implement a carbon trading scheme by setting quotas for individuals, households and enterprises alike. The market will then work by encouraging well-doers, and punishing those breaking the limits.

Related readings:
Give market the leading role in low-carbon growth Green goals to build business bridges with Europe
Give market the leading role in low-carbon growth China's low-carbon economy faces pressure from global trading mode
Give market the leading role in low-carbon growth Low-carbon programs foster links with EU
Give market the leading role in low-carbon growth Dialogue: Cities on Low-carbon Road

Such moves to control carbon emissions will not hinder China's economic development, but will stimulate it on the opposite, leading to technical advances and switches of growth mode, Chen said.

The crux of the matter is whether the Chinese government is resolved to do so, he stressed.

Compared with its European peers, China is not paying enough attention to energy saving and new energy, he said, and the government should further subsidize green energy instead of fossil fuels.

To that end, the government should develop detailed plans and policies, that feasibly map the way forward, he said.

The government should also cooperate with its EU counterparts, as it will benefit leading players in the EU economically through transferring technologies to or investing in China, and thus enhance China's environmental protection and cut emissions.

The problem now is not that a emissions cut will hurt China's economy, but that the country is reluctant to get over its addiction to GDP growth, he said.

He cautioned that a swelling GDP does not always translate to an increase of wealth. We should measure a society's achievement through wealth and the quality of wealth, instead of the mere GDP growth, he said.

Regarding the EU's Emission Trading Scheme for the aviation industry, Chen said that the EU should not simply cap Chinese carriers' carbon emissions with a general volume, but instead set technical standards, based on plane models, flight routes, and taking-off and landing techniques, for different players, whether in developing or developed countries.

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