CECPA Announces Report on Carbon Balance Trading    

The China Environmental Culture Promotion Association (CECPA) and China Institute of Development Strategy Studies jointly announced on November 5th the report of "China Carbon Balance (Emission) Trading Framework Research Project" that proposes to take carbon - a key factor that can be quantitatively analyzed - as a rigid index to supervise, recognize and control economic actions.
   Pan Yue, China's Vice Minister of Environmental Protection, and Chairman of CECPA, commented at the announcement summit that a 'low carbon economy' will become an important breakthrough for China to build ecological culture. And the China Carbon Balance (Emission) Trading Framework will be an important part of China's environmental economic policy being drawn up. He thinks that, without intervention, the current high carbon emission mode will heavily constrain the future development of China's economy.
   According to the report, both a China Carbon Fund and a China Ecological Subsidy Fund will be set up.
   The proposed China Carbon Fund will be counted on the base of province (autonomous region, municipality). If the total carbon emission amount of a province is higher than the total carbon storage amount, the province shall pay cash to the managing commission of China Carbon Fund that will be used to subsidize the region that contributes more in carbon storage, promote country's CDM plan and help technological innovations on energy conservation and emission reduction. Inversely, a province may get cash from the fund.
    China Ecological Subsidy Fund is designed similarly.