China has inked a landmark finance deal with the European Union aimed at reducing greenhouse gas emissions through various means, including the creation of its own emissions trading scheme. China then plans to link it to Europe’s existing emissions trading scheme.
The deal involves €25 million ($32 million) in funding for technical help for three waste reduction and sustainability pilot projects, including the design of China’s emissions trading system. Europe will also assist China to improve resource efficiency, reduce heavy-metal water pollution, and install sustainable waste treatment systems in its cities. In world terms, China now has higher overall emissions than the United States, and has higher per capita emissions than the EU.
In what now appears to be a growing trend, Australia and the EU recently agreed to link emissions trading schemes by 2018. The possibility also exists for California to link its emerging cap and trade (emissions trading) scheme.
Are we seeing the early shoots of a global emissions trading scheme beginning to show themselves? And in related and promising news, between 2011 and 2012, the EU’s carbon emissions fell by 2.5%. This reduction situates the EU at 17.5% below 1990 levels.