lessons-learnt for a China-wide CO2 emissions trading system

The debate on a post-2012 Kyoto regime depends to a large extent on the question of how to include developing countries into the global endeavour to cut greenhouse gas (GHG) emissions. The use of the Clean Development Mechanism (CDM) has been a first step to raise revenues and capacity for GHG reductions in developing countries. Voices that ask for a more stringent inclusion of developing countries in the world’s efforts to combat climate change have become louder – especially the one of the U.S. which have almost made their participation in anything like the Kyoto Protocol conditional on the inclusion of large GHG emitters such as India and China in the regime. From the perspective of most developing countries, the principle of “common but differentiated responsibilities ” reserves them the right to development first, while the main responsibility to cut emissions rests with the already industrialized countries. Legally binding commitments to reduction targets are currently not an option for countries such as China and India. Taking this position into account, researchers and practitioners are coming up with several ideas of how to support policies for emissio