JP Morgan China chief urges Beijing to scale up CO2 trade

The CEO of JP Morgan in China has proposed the country should speed up the introduction of a nationwide emissions trading scheme in order to have a say in the way global carbon market develop.

Fang Fang, who heads the U.S. investment bank’s operations in China, has proposed the rapid introduction of a national CO2 scheme to improve its competitiveness with the west, according to news and information provider Caixin.

Fang made the proposal Monday in the capacity of his role as a member of the Chinese People’s Political Consultative Conference (CPPCC), which plays an advisory role to the ongoing National People’s Congress (NPC) - China’s parliament which meets two weeks a year.

The banker noted that having its aviation sector involuntarily brought into the EU emissions trading scheme was an example of what could happen if China plays a passive role on climate.

The proposal, which is not publicly available, said a large domestic carbon market would help China play an active role in international climate policy and impact CO2 prices, according to the Caixin report.

The NPC, which has 2,262 people as members, is made up of a variety of representatives from business, culture, entertainment and civil society, and has put forward more than 6,000 proposals so far this year.

China will introduce pilot emissions trading schemes in seven cities and provinces from next year.

On March 10, the Chinese Academy of Social Sciences presented draft legislation that included provisions to introduce a nationwide carbon market, but saidit would be three to five years before the plan could be implemented.


(Source: Thompson Reuters)