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Trials and tribulations

China experiments with carbon trading

As its economy surged ahead in the early years of this century, China’s carbon emissions more than doubled. Rapid pollution growth poses a threat to the climate; human health is suffering; and escalating energy use harms China’s energy security. To combat these problems, Chinese policymakers are examining the option of creating a nationwide carbon-trading scheme later this decade.

Before making a decision, however, they have opted to test carbon trading in seven locations around the country. In our latest special report, we analyse the prospects for these trials and evaluate the hopes that a national scheme will eventually take root. Despite considerable official willpower, we find, the barriers to success are high.

To learn more about the trial trading schemes and the outlook for carbon finance in China, download the report for free below (registration required).



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© The Economist Intelligence Unit 2013