BSR Insight | Preparing for a Carbon Tax in China
According to a recent study (Chinese only) by the Chinese National Development and Reform Commission and the Ministry of Finance, China is well poised—in terms of need and feasibility—to launch a carbon tax in 2012. The tax would be the first market-based mechanism implemented by China aimed at helping the country reach its 2009 commitment to reduce carbon emissions by 40 to 45 percent of 2005 levels by 2020.
Although it's not clear when the tax would be implemented, we recommend that companies operating in China take the following actions to prepare for the new policy:
- Train local staff to work with key suppliers on the potential implications of the tax.
- Help suppliers identify their primary sources of energy consumption, calculate the potential tax (the proposed tax is RMB10 to RMB20 per 1 ton of carbon dioxide), and find opportunities to invest in energy efficiency.
- Encourage suppliers to designate a team to track emerging energy trends and energy-efficiency solutions.
For more information, read BSR's guide to establishing energy-efficiency programs in China.
About the Author(s)
Jason Ho, Manager, Advisory Services & CTI
Jason leads in-depth training and work on strategy consulting, developing management systems around standards from Social Accountability International, the Electronic Industry Citizenship Coalition, the International Council of Toy Industries, and the Business Social Compliance Initiative... Read more →
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