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The pilot provinces and cities have taken measures, including
formulating relevant laws and regulations, setting the total amount
of carbon emissions and the coverage, establishing measurement,
reporting and verification (MRV) system for greenhouse gases,
determining quota allocations, establishing trading system and rules,
developing a registration system, setting up special administrative
organs, establishing a market regulation system, training staff, and
enhancing the capacity building.
By the end of October 2014, the total trading volume of carbon
dioxide in the carbon emissions trading markets of seven pilot provinces
and cities reached 13.75 million tonnes of CO2 and the turnover was
more than RMB 500 million. A total of 15.21 million tonnes of carbon
quota have been sold at auction for RMB 760 million (China’s Policies
and Actions on Climate Change 2014).
Other Market-based Innovations
There are two domestic market-based innovations in India: Renewable
Energy Certificates (REC) trading system; and the Energy Saving
Certificate (ESCerts) trading system. These are described below.
Renewable Energy Certificate (REC) in India
According to the Power Exchange of India Limited (PXIL), an REC is
a market-based instrument which provides evidence that a generator
has produced a certain amount of electricity from a renewable energy
resource. The Electricity Act, 2003, the policies framed under the Act,
as also the National Action Plan on Climate Change (NAPCC) act as
key policy drivers that provide a roadmap for increasing the share of
renewable energy in the total generation capacity of the country. Thus,
an REC signifies the environmental attribute of renewable energy.
RECs can be traded in the market to meet Renewable Purchase
Obligation (RPO) which is mandated by the State Electricity Regulatory
Commission (SERCs) and Central Electricity Regulatory Commission
(CERC) (Terms for Issuance and Recognition of Renewable Energy
Certificates for Renewable Energy Generation Regulations 2010).
PXIL secured permission for trading in RECs in September 2010. The
National Load Despatch Centre (NLDC) has been designated as the
central agency for the REC scheme. Table 2.9 depicts the accredited
renewable energy source break up under REC in terms of percentage
of total capacity.
268 Low Carbon Development in China and India
formulating relevant laws and regulations, setting the total amount
of carbon emissions and the coverage, establishing measurement,
reporting and verification (MRV) system for greenhouse gases,
determining quota allocations, establishing trading system and rules,
developing a registration system, setting up special administrative
organs, establishing a market regulation system, training staff, and
enhancing the capacity building.
By the end of October 2014, the total trading volume of carbon
dioxide in the carbon emissions trading markets of seven pilot provinces
and cities reached 13.75 million tonnes of CO2 and the turnover was
more than RMB 500 million. A total of 15.21 million tonnes of carbon
quota have been sold at auction for RMB 760 million (China’s Policies
and Actions on Climate Change 2014).
Other Market-based Innovations
There are two domestic market-based innovations in India: Renewable
Energy Certificates (REC) trading system; and the Energy Saving
Certificate (ESCerts) trading system. These are described below.
Renewable Energy Certificate (REC) in India
According to the Power Exchange of India Limited (PXIL), an REC is
a market-based instrument which provides evidence that a generator
has produced a certain amount of electricity from a renewable energy
resource. The Electricity Act, 2003, the policies framed under the Act,
as also the National Action Plan on Climate Change (NAPCC) act as
key policy drivers that provide a roadmap for increasing the share of
renewable energy in the total generation capacity of the country. Thus,
an REC signifies the environmental attribute of renewable energy.
RECs can be traded in the market to meet Renewable Purchase
Obligation (RPO) which is mandated by the State Electricity Regulatory
Commission (SERCs) and Central Electricity Regulatory Commission
(CERC) (Terms for Issuance and Recognition of Renewable Energy
Certificates for Renewable Energy Generation Regulations 2010).
PXIL secured permission for trading in RECs in September 2010. The
National Load Despatch Centre (NLDC) has been designated as the
central agency for the REC scheme. Table 2.9 depicts the accredited
renewable energy source break up under REC in terms of percentage
of total capacity.
268 Low Carbon Development in China and India
