The Government of China planned to pilot a scheme with energy efficiency certificates. The aim was to achieve 16% reduction in energy intensity cost-effectively during the 12th Five-Year Plan period.
A carbon emission cap scheme was piloted in five cities and two provinces, and it was the intention to expand the scheme to cover all of China. One of the challenges was to make sure that the use of carbon schemes and the goal to increase the energy efficiency operate optimally together.
Together with Ricardo-AEA (United Kingdom) Ea Energy Analyses provided assistance to the World Bank on a review of schemes for energy efficiency, renewable energy and carbon emissions.
The objective was to review international experiences in order to understand how energy efficiency, renewable energy and carbon trading mechanisms are designed and how they interact. The recommendations of the review constituted an input to the formulation of an energy efficiency scheme in China.
The project resulted in a review of experience with white (Energy Savings) and green (Renewable Energy) certificates trading and carbon cap and trade. The results were drawn from analysis of policies in UK, Italy, California, India and higher level assessment of policy at EU level. It also presented preliminary recommendations for policy approaches in China.