Business perspective to the national greenhouse gases emissions trading scheme: A survey of cement companies in China

In Energy Policy
Volume (Issue): 112(2018)
Peer-reviewed Article

Applying data gathered from 105 cement companies, this paper gives an analysis of how business views the upcoming national greenhouse gases emissions trading scheme in China. Despite a good overall understanding, the surveyed companies have not been able to prepare properly for the implementation of this policy. They still need training to enhance their related capacity. Probably due to strict competition, it is difficult for cement companies to pass the policy cost on to their clients. The sampled companies intend to make self-mitigation efforts for compliance. It is highly likely that cement companies would mitigate emissions themselves if the carbon price is higher than 108% of the self-abatement cost. The surveyed cement companies anticipate an increase in the carbon price in China, from about 35 Yuan/t-CO2 in 2020, to 60 Yuan/t-CO2 in 2025 and 90 Yuan/t-CO2 by 2030. The analysis provides reference for the smooth introduction and effective implementation of national carbon market in China from the business viewpoint.