China, EU lead fight against emissions

Countries around the world are applauding China's emissions trading system (ETS) development plan, which demonstrates the country's resolve to put its commitments under the 2015 Paris climate agreement into practice, through policies and measures that will reduce emissions.

China's decision announced on Dec 19 is a careful, considered plan, drawing on several years of piloting in diverse cities and provinces and building on years of experience elsewhere. The ETS will start with the power sector, covering other major emitting sectors by 2020.

In October 2003, European Union decision-makers agreed to a law on ETS. The three-year pilot phase started in January 2005, covering power generators and energy-intensive industries, and allowed government bodies and companies to "learn by doing". Today, the EU-operated ETS covers 31 countries: 28 EU member states, and Norway, Iceland and Liechtenstein. And in 2020 it will be linked with Switzerland's ETS. It manages to deal with a per capita income disparity between the EU's poorest and richest member states of more than 1:10, and sets a declining cap on emissions of around 11,000 energy-intensive installations as well as aircraft operators. In practice, it means there is a carbon price covering 45 percent of the EU's greenhouse gas emissions.