China to introduce a carbon tax by 2015

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Date: 
19 February 2013

In  a  bid  to  lower  emissions  and  reduce  pollution  levels,  the Chinese  Ministry  of  Finance  announced  that upcoming tax reforms would include a levy on carbon emission activities by 2015. While no  implementation date has been  revealed,  the tax will be governed under  local authorities. The  fee is expected to  begin  at  around  10-yuan  (around  €1.20)  per  ton  of  carbon emitted and rise to 50-yuan (around €6) a ton by 2020. Aside from the  tax on carbon, China  is  looking  into  taxing energy-intensive products as well as  introducing  resources usage  tax on coal and water  in  the  near  future. The  latest  carbon  tax  policies complement the country’s previous announcement last month of capping energy consumption by 4 billion tons of coal equivalents as  part  of  the  nation’s  five-year  energy  development  plan  and China’s  pilot  regional  carbon  emission  trading  schemes  set  to commence  in  the  fall.  In  this  regard, the Guangdong  Development  and  Reform  Commission  released  a preliminary  list  of  239  companies  that  will  be  involved  in  the province’s  emissions  trading  scheme.  Among  the  companies covered by  the  regulation  there are  state-owned oil companies Sinopec and CNOOC as well as other power companies such as Datang  and  Huaneng,  building  materials  firm  Sinoma  and privately owned cement producer Tapai.

 
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