Policy & Politics
Interview: Putting San Francisco
On the Road to Zero Waste by 2020
For 20 years, Jack Macy has spearheaded San Francisco’s efforts to become a global leader in recycling. In an interview with Yale Environment 360
Macy describes how San Francisco has succeeded in reusing or composting 80 percent of its garbage and how the city has engaged the public in a recycling crusade, allaying initial fears of “trash police” sifting through residents’ garbage. While San Francisco has made tremendous progress, Macy says further changes are needed. “Part of the principle of zero waste is that the local government can’t shoulder all the burden,” he says, “so it’s important that we encourage consumers to take responsibility for what they buy ... and producer responsibility for the products they design and market.”
19 May 2014:
India's New Prime Minister
Plans To Make A Major Push on Solar Energy
India's new government plans to bring electricity to the homes of its entire population of 1.2 billion within the next five years, largely through solar panel installations,
Bloomberg News reports
. Although nearly 400 million Indians do not have access to electricity, newly elected prime minister Narendra Modi, who won an overwhelming victory in last week's national vote, has pledged to enable every household to run at least one light bulb by 2019. If all goes well, household solar projects would allow every home to run two light bulbs, a solar cooker, and a television, one of Modi's energy advisers said. The plan follows an unfulfilled pledge from the previous administration to bring electricity to all homes by 2012. Modi, who pioneered India's first incentive program for large-scale solar projects when he was chief minister of Gujarat state, has made expanding solar a top priority because it has the potential to create jobs and supply power to millions of households, many of which are scattered throughout rural areas and not connected to the grid
. "We look upon solar as having the potential to completely transform the way we look at the energy space," said the energy adviser.
Five Questions for John Holdren
On the U.S. Climate Assessment
The federal government this month released its National Climate Assessment
, the most comprehensive report to
John P. Holdren
date on the climate impacts already being felt in the U.S. Saying climate change “has moved firmly into the present,” the report documented how drier regions are growing drier, heat waves more intense, and large swaths of forest dying from insect infestations. Yale Environment 360
asked John P. Holdren, director of the White House Office of Science and Technology Policy, five questions about the report and about plans by President Obama to intensify actions to rein in CO2 emissions and adapt to rising seas and other changes. Read more.
29 Apr 2014:
Exxon Mobil Arctic Project
Possibly At Risk Over Russia Sanctions
Exxon Mobil's development of a Russian Arctic oil project valued at nearly $900 billion is at risk following recent U.S. sanctions on Russian officials as a result of Ukraine's ongoing political crisis, Bloomberg News reports
. Exxon Mobil has partnered with the Russian state-controlled oil company OAO Rosneft to drill an oil-rich geological structure known as Universitetskaya, which contains an estimated 9 billion barrels of oil, valued at $900 billion at current market prices. Rosneft's CEO, Igor Sechin, a longtime member of Russian President Vladimir Putin's inner circle, was sanctioned by the U.S. yesterday, exposing the partnership with Exxon Mobil to additional scrutiny. Exxon Mobil and Rosneft are set to invest an estimated $600 million in drilling at the site in the Kara Sea, which would make the project Exxon's most expensive to-date. A U.S. Treasury official said yesterday that U.S. companies can still do business with Rosneft, but some analysts say Russian companies could become wary of working with Western corporations in the future. Exxon said last week that the project is on schedule.
28 Apr 2014:
Economic Viability of Nuclear
Power Under Threat, Energy Group Says
Nuclear reactors in the U.S. need a boost — either through carbon taxes or regulations forcing coal-fired plants to slash emissions — or economic factors will force many to close, according to a report
from a non-profit group. Nuclear power — currently the only major zero-carbon, around-the-clock baseload power source — supplies 19 percent of U.S. electricity and is key to meeting President Obama's pledge to reduce emissions 17 percent below 2005 levels by 2020, according to the Center for Climate and Energy Solutions. The economic viability of the 100 nuclear reactors in the U.S. is worsening, the report says, because of the abundance of cheap natural gas and rising wind energy production. A carbon tax or some form of carbon trading — for instance, requiring coal-fired plants to purchase and blend their electricity output with nuclear power — will be essential to keeping nuclear plants from closing before the end of their lifespans, the report contends. Four power companies recently announced the early retirement of five nuclear reactors, which constitute more than 4 percent of U.S. nuclear capacity, the group says.
Five Questions for IPCC Chairman
On Future of Climate Change Action
The UN Intergovernmental Panel on Climate Change issued a report last month on steps the world can take
to avoid the worst impacts of future climate change. It was the final interim report before the IPCC’s major Fifth Assessment Report due to be released in October. Yale Environment 360
asked Rajendra K. Pachauri, who has served as IPCC chairman since 2002, five questions about the latest report and about the prospects that the international community will finally take decisive action to address climate change at talks scheduled in Paris in 2015.Read more.
14 Apr 2014:
Despite Stark Warnings,
UN Panel Finds Signs of Hope on Climate
Although greenhouse gas emissions continue to rise at an alarming rate, governments are beginning to embrace carbon-cutting initiatives, while technological advances are sharply reducing the cost of deploying solar and wind power, according to the latest report by the Intergovernmental Panel on Climate Change.
The working group report on climate mitigation
, released in Berlin, said that global CO2 emissions have risen about 2.2 percent a year this century — twice the rate of the last few decades of the 20th century — and that holding temperature increases to 2 degrees C (3.6 F) can only be achieved through an intensive push over the next 15 years. But the report also said that the political will to reduce carbon emissions seems to be rising around the world, and that shifting the global energy system from fossil fuels to zero- or low-carbon sources would reduce economic growth by only about .06 percent per year.
“The loss in consumption is relatively modest,” said IPCC chairman Rajendra Pachauri. “The longer we delay the higher would be the cost.”
Comment: e360 Point/Counterpoint Debate
On University Fossil Fuel Divestment
Scientists Charles H. Greene, of Cornell University, and Daniel M. Kammen, of the University of California, Berkeley, offer commentary on the recent Yale Environment 360 Point
articles on the
Student protest at Tufts University last spring
issue of whether universities should take a stand against climate change by divesting from companies that produce oil, natural gas, or coal. Greene and Kammen make the case that the movement to divest is gaining ground on U.S. campuses and will eventually succeed because fossil fuels are increasingly seen as a potentially risky investment. "We predict that divestment at the nation’s colleges and universities will occur much more rapidly than anybody imagined at the start of the campaign just over a year ago," they write. Read their comment.
01 Apr 2014:
Delaware River Watershed
Is Focus Of Large-Scale Restoration Project
A Philadelphia foundation is providing $35 million to launch a host of programs aimed at better protecting the Delaware River
, which flows through the heart of
Delaware River at Trenton, New Jersey
the populous U.S. eastern seaboard and provides drinking water for 15 million people. The William Penn Foundation, working with nonprofit groups such as The Open Space Institute, says its Delaware River Initiative will protect more than 30,000 acres of land, launch 40 restoration projects, create incentives for businesses and landowners to protect the watershed, and set up a comprehensive program of water quality monitoring that will enable the foundation and its partners to measure the success of their programs and the overall health of the river. A cornerstone of the foundation’s initiative will be its restoration and protection work in eight so-called “sub-watersheds” that feed into the Delaware River.
25 Mar 2014:
Consumer Products Giants
Commit to Deforestation-Free Palm Oil
Two major consumer products companies — General Mills and Colgate-Palmolive — have committed
to using palm oil in their products that does not come from lands cleared from tropical forests, adding to the wave
of corporations that have pledged measures to protect southeast Asian rainforests. The consumer giants' new policies go beyond standards set by the industry's main certification body and include provisions to protect wildlife-rich rainforests, carbon-dense peatlands, and the rights of local communities. Environmental groups are welcoming the commitments, though some believe the companies' pledges should go further. The Union of Concerned Scientists questions General Mills' definition of "high carbon stock" forests, while Greenpeace is urging Colgate-Palmolive to move implementation up to 2015 from 2020. Environmental groups are hopeful that new commitments will pressure Proctor & Gamble, the last remaining consumer products giant without a similar pledge, to adopt deforestation-free palm oil policies.
Five Questions for Mario Molina
On Climate Science’s PR Campaign
The American Association for the Advancement of Science (AAAS), the world’s largest scientific society,
recently launched the “What We Know”
campaign, designed to cut through the fog of misinformation about climate change and convey to the public the current state of climate science. Chairing that effort is Mario J. Molina, a chemist who won a 1995 Nobel Prize for his work on the threat to the world’s ozone layer. Yale Environment 360
asked Molina five questions about the AAAS campaign and why it might succeed where previous efforts have failed.
21 Mar 2014:
Koch Brothers Biggest Lease
Holders in Alberta Tar Sands, Report Finds
The largest lease holder in Canada's oil sands is a subsidiary of Koch Industries
, the conglomerate that is the source of the fortune owned by the controversial conservative political donors, Charles and David Koch. The Koch's holdings in the tar sands were disclosed by an activist group
that analyzed mineral records of the Alberta government. The Koch subsidiary holds leases on at least 1.1 million acres in the northern Alberta oil sands, which span roughly 35 million acres; other industry experts estimate the total Koch holdings could be closer to 2 million acres. That puts Koch Industries ahead of energy heavyweights Royal Dutch Shell and Conoco Phillips, both of which lease significant acreage in the oil sands. The findings are likely to inflame the debate surrounding the proposed Keystone XL pipeline — which would transport tar sands oil to refineries in Texas — although the Koch's company has not reserved space in the pipeline. Activists argue that the Kochs do have a stake in the outcome of the Keystone XL battle because the pipeline would drive down crude oil transportation costs, benefiting all lease holders.
18 Feb 2014:
Website Allows Whistleblowers
To Report Wildlife and Forest Crimes
A new whistleblower site
offers people a secure and anonymous way to report incidents of poaching, wildlife trafficking, and illegal logging around the world. The site is called WildLeaks, a nod to the well-known WikiLeaks site, and it's backed by the California-based Elephant Action League. Users can upload documents, video, or images detailing the crimes, and submissions will be encrypted so data and identities remain secure. The aim
is to provide a safe way for citizens to report these illegal activities so that local and federal governments can take action. Prosecuting wildlife crimes and illegal logging is often a low priority in countries where some of the worst offenses occur; moreover, local government corruption often deters people from reporting such crimes, organizers say. "We [will] work to transform this information into a verified and actionable item, a point for launching an investigation or sharing it with the media or, when possible, with selected and trusted law enforcement officers, always aiming at exposing wildlife crimes and bringing the responsible individuals to justice," said the WildLeaks project leader.
12 Feb 2014:
Despite Costs, Most Americans
Want Action on Climate Change, Report Finds
A large majority of Americans — 83 percent — say the U.S. should make an effort to reduce global warming, even if those efforts have economic costs, according to a new report
from the Yale Project on Climate Change Communication. As many as 56 percent of Americans would be willing to pay an extra $100 each year if their power company would generate 20 percent of its electricity from renewable sources. Corporations and industry should be doing more to stave off climate change, according to 65 percent of people interviewed in a national survey, and 61 percent believe individual citizens should also be taking a more active role. Many of the survey's findings are similar across Democratic and Republican party lines. Tax rebates for energy-efficient vehicles and solar panels are popular among people aligned with both parties, for example, as well as funding renewable energy research and regulating carbon dioxide as a pollutant. And people from both parties are generally supportive of ending all fossil fuel subsidies, although Democrats (67 percent) are more supportive of that policy than Republicans (52 percent).
31 Jan 2014:
U.S. State Department Report
Boosts Prospects of Keystone XL Pipeline
In a long-awaited report, the U.S. State Department has concluded that the carbon-heavy oil from Alberta's tar sands will be extracted whether or not the Keystone XL pipeline is built, improving the prospects
that the highly controversial project will be built. In an environmental impact statement
that was six years in the making, the State Department concludes that the process of extracting and burning tar sands oil creates 17 percent more greenhouse gases than traditional oil, but that the heavily polluting oil will be brought to market with or without the pipeline. "It's unlikely for one pipeline to change the overall development of the oil sands," said a State Department official. If completed, the pipeline would carry 830,000 barrels of oil a day from Alberta to refineries on the coast of the Gulf of Mexico. President Obama will make the final decision on the Keystone XL pipeline and he vowed last year that he would approve the pipeline only if it would not "significantly exacerbate" the problem of carbon emissions. Environmental activists such as Bill McKibben of 350.org have said it would be "game over" for the climate if Keystone XL is built.
29 Jan 2014:
Driven by State Incentives
Electric Cars Top Vehicle Sales in Norway
Norwegians have been snapping up electric cars: In the last three months of 2013, the Tesla Model S and Nissan Leaf outsold all other cars, including conventionally fueled models. But rather than environmental concerns,
An EV charges up in Oslo
a host of government incentives — totaling an estimated $8,300 per vehicle — are largely driving the boom, the Guardian reports
. Norway, a country of only 5 million people, currently has around 21,000 electric vehicles (EVs) on the roads, compared to 70,000 EVs among 313 million Americans and 5,000 EVs among 63 million people in the UK. More than 1,200 EVs are being sold in Norway per month thanks to incentives that include free electricity for recharging, lower sales tax rates, waived tolls, free parking, insurance discounts, and permission to drive in bus lanes, which are less crowded. The EV rush is expected to slow, however, as bus lanes become more crowded, and the government plans to end financial incentives once 50,000 EVs are registered, which could occur by 2016.
16 Jan 2014:
Pebble Mine Would Endanger
Alaska's Bristol Bay, Major EPA Study Finds
A three-year study by the U.S. Environmental Protection Agency (EPA) has determined that mining in Alaska's Bristol Bay area would pose significant dangers to the environment
, a potentially fatal setback for plans
Mulchatna River, part of Bristol Bay watershed
to develop Pebble Mine, a major open-pit mining project that aimed to exploit one of the largest and richest mineral deposits in the world. The EPA study cited concerns for the region's thriving sockeye salmon population
and its native people, saying the mine would destroy 24 to 94 miles of salmon streams and 1,300 to 5,350 acres of wetlands, ponds, and lakes. Pebble Mine proponents, including Alaska Governor Sean Parnell, criticize the study as flawed and rushed, since the development company wasn't allowed to submit its mining plan before the EPA study. Native groups, fishermen, and environmental organizations are applauding the study. The proposed mine — which seeks to exploit gold, copper, and other metals — was already in trouble, with one of two major partners withdrawing from the project last year.
08 Jan 2014:
China Approves Major
Increase in Huge Coal Mining Projects
In 2013, the Chinese government approved 15 large coal mining projects
that will produce more than 100 million new tons of coal a year. The expansion will lead to a 2 to 3 percent growth in coal production over the next several years, even as the country announced moves to reduce the severe air pollution
choking major cities such as Beijing. Chinese officials will increase coal production while reducing pollution in population centers by closing outdated coal plants and creating huge “coal bases” that will mine and burn coal in remote regions of northwestern China, such as Inner Mongolia. Those bases, which will cost $8.9 billion to build, will generate electricity that will be transferred over an improved electricity grid to cities in China’s central and eastern regions. Deng Ping, an environmental campaigner with Greenpeace, said the scale of the new coal bases is unprecedented for China, adding, “Despite the climate change pressure, water resource scarcity, and other environmental problems, the coal industry is still expanding fast in northwest China.”
06 Jan 2014:
China Crushes Six Tons
Of Ivory to Stem Elephant Poaching
In an effort to stem elephant poaching, Chinese authorities have crushed six tons of confiscated ivory
, the first such effort in the country's history. Coordinated by the State Forestry Administration and the General Administration of Customs, the event was widely publicized and aimed at spreading awareness in China of the scale of the global poaching crisis. Conservation
groups consistently name China as a major driver of elephant poaching, as the country's growing middle class has increasingly sought to buy ivory ornaments and ivory-based medicinal therapies, which have no scientific or medical basis. The six tons of ornaments and tusks that were crushed represent only a fraction of China's ivory stockpile, which is probably more than 45 tons, the Wildlife Conservation Society (WCS) estimates. Still, many conservation groups are applauding China's efforts. "This destruction of ivory by China is a symbol of the government's growing responsiveness to the ivory crisis," the WCS said.
Interview: A Legal Call to Arms to
Fix Environmental and Climate Ills
University of Oregon law professor Mary Wood has an unsparing view of the state of environmental protection in the United States today: On a host of fronts — from climate change to the nationwide fracking boom —
the federal and state governments are failing to protect ecosystems and resources vital to current and future generations. In an interview with Yale Environment 360
, Wood discusses why she believes the judiciary needs to step in to force the executive and legislative branches to protect natural resources that are part of the “public trust.” She also explains why she supports ongoing litigation to reduce carbon emissions under a related doctrine to safeguard the "atmospheric trust." Says Wood, "The political branches of government are doing next to nothing to address this crisis ... Across the board, agencies are not using the statutes to protect nature — they’re using statutes to permit damage to the environment."
Read the interview.
17 Dec 2013:
Australian Coal Projects
Threatened by Drop in Demand From China
Major Australian coal projects risk losing value due to falling demand from China, where leaders are increasingly concerned about growing public anger over severe air pollution, a new analysis from Oxford University
has found. Future coal mining projects are vulnerable to being "stranded" by a range of policy changes from the Chinese government, including environmental regulation, carbon pricing, investment in renewable energy, and energy efficiency, the report said. One expert told The Guardian
that global investors are already questioning the prudence of financing new fossil fuel projects
. Backers of a handful of upcoming Australian coal projects "should seek clarity" on the associated costs, the Oxford analysis warns. It also cautions that Australian state governments could suffer if projects are mothballed or abandoned. Of particular concern are two mega-mines supported by Australia's Prime Minister Tony Abbott
slated for development in Queensland. Once running at full capacity, the two projects combined would produce enough coal to emit more than 70 millions tons of CO2 a year.
16 Dec 2013:
Volume of E-Waste
Projected to Soar by 2017, Study Says
The volume of electronic waste generated worldwide is expected to climb by 33 percent by 2017
to 65 million tons, according to a study conducted by a partnership of United Nations organizations, industry, governments, and scientists. So many computers, televisions, mobile
phones, and other devices are being tossed away annually that within four years the volume of e-waste would fill a 15,000-mile line of 40-ton trucks, the report
said. The report, released by a group called StEP
( Solving the E-Waste Problem Initiative) said that in 2012, 50 million tons of e-waste was generated worldwide, about 15 pounds for every person on the planet. China generated the most electronic waste last year, with 11.1 million tons, followed by the U.S. with 10 million tons. But in per capita generation, the U.S. dwarfed China and most other countries, with each American producing 65 pounds of e-waste, the study said. “The explosion is happening because there is so much technical innovation,” said Ruediger Kuehr, executive secretary of StEP.
13 Dec 2013:
U.S. Energy Department
Invests in Small-Scale Nuclear Reactors
Small, nearly meltdown-proof nuclear reactors are receiving a big boost from the U.S. Department of Energy
. The department will give a company in Corvallis, Oregon, as much as $226 million to develop so-called "small modular reactors," which can be used with many local power grids that can't accommodate conventional nuclear reactors. Because of the extremely low likelihood of meltdown, the next-generation, small-scale reactors are safer than many currently operating reactors, engineers say. The company, NuScale Power, plans to encase their reactors in something akin to a large thermos, which would sit at the bottom of a pool. If a reactor fails and threatens to overheat, the container would fill with water and remove excess heat without pumps or valves, which can sometimes fail. The Energy Department's investment is the second one in a $452 million, multi-year program to accelerate the development of such reactors. The reactor designs use water as a coolant, which is technologically conservative and increases the likelihood that the small modular reactors would be approved by the Nuclear Regulatory commission, The New York Times
11 Dec 2013:
Final Shipment of Russian
Warhead Uranium Set to Reach U.S. Today
A U.S. nuclear storage facility today will receive the final shipment of decommissioned nuclear warheads from Russia, NPR reports
. Since 1993 the Russian uranium has been generating 10 percent of all electricity consumed in the U.S., part of a deal struck with the former Soviet state when its nuclear industry, crippled by arms reduction agreements, was struggling to make
Russian uranium ready for shipment to U.S.
ends meet. Negotiations began when a U.S. official visited Russia in the early 1990s and found bomb-grade uranium from thousands of decommissioned warheads lying around in crumbling storage facilities. Concerned that the radioactive material was unsecured and vulnerable to theft, the U.S. asked to buy it. Russian officials reluctantly agreed to convert roughly 500 tons of bomb-grade uranium into nuclear fuel and sell it to the U.S. Experts say it was a win-win scenario: Russia made a substantial profit ($17 billion), U.S. power plants could buy the uranium at a good price, and 20,000 bombs' worth of radioactive material was converted into relatively clean electricity. The deal will go down in history as one of the greatest diplomatic achievements ever, one expert told NPR.
10 Dec 2013:
Chinese State Media
Criticized for Touting Benefits of Smog
For Chinese citizens worried about smog, which has been blanketing major cities and smashing air pollution records recently, China's state media has some advice: Look on the bright side. State broadcaster CCTV and a Communist Party tabloid, Global Times
, yesterday published editorials
attempting to put a positive spin on China's air pollution crisis. The state-run outlets said smog has military benefits because it can interfere with the guidance systems of foreign missiles, as well as personal benefits such as bolstering Chinese citizens' sense of humor, making them more united, more sober, better informed, and more equal because smog "affected the lungs of both rich and poor," The Telegraph
reports. Internet commenters and other media outlets, including several state-run publications, were outraged. "Is the smog supposed to lift if we laugh about it?" asked the official publication Beijing Business Today
. The pro-smog pieces have both been deleted from the publications' websites.
09 Dec 2013:
Intensifying Storms Are
Contributing To Ongoing U.S. Wetlands Loss
The U.S. is losing wetlands at a rate of 80,000 acres per year, in part because of intensifying coastal storms and sea level rise, according to a new government study
. From 2004 to 2009, the country lost more than 360,000 acres of freshwater and saltwater wetlands, a decline driven both by traditional factors, such as coastal development, as well as worsening storms and slowly rising seas, the study says. The rate of loss is a signal that government efforts to protect and restore wetlands are failing to keep pace with major environmental changes, experts told The Washington Post
. The most pronounced wetlands losses were along the Gulf of Mexico, where major hurricanes have wreaked havoc on coastal lands. Along the Atlantic coast, a rapid increase in coastal development is funneling stormwater runoff into wetlands that cannot handle it, the study said. The loss rate of 80,000 acres annually represents a 25 percent increase over the rate of wetlands loss during 1998-2004, the last time government agencies examined the problem.
Five Questions For Jerry Brown
On the West Coast Climate Pact
California Governor Jerry Brown was one of the moving forces behind a new agreement among three Western states and British Columbia to align their policies to combat climate change. Under the pact, signed on Oct.
28 by Brown and the governors of Oregon and Washington, the states and the province agreed to a series of actions, including putting a price on carbon and adopting a low-carbon fuels standard. Yale Environment 360
spoke with Brown and asked him five questions about the pact and overall efforts to tackle climate change.
05 Dec 2013:
Urban Car Use Declines
As Biking and Public Transit Rise in the U.S.
Americans in urban areas are driving less, biking more, owning fewer cars, and using public transportation more frequently, according to new research by the U.S. Public Interest Research Group
(U.S. PIRG). The number of people driving to work fell in 99 of 100 major urban areas between 2006 and 2011, and the number of miles driven by car fell in three-quarters of the cities studied over that time, the PIRG study showed. The proportion of people biking to work increased in 85 of 100 cities, while the number of miles traveled on public transit increased in 60 of 98 cities. Meanwhile, the number of people working from home grew in all 100 cities, the report said. From 2004 to 2012, the average number of vehicle-miles driven per person decreased by 7.6 percent nationwide. "There is a shift away from driving,” said Phineas Baxandall, an analyst for the U.S. PIRG Education Fund. "Instead of expanding new highways, our government leaders should focus on investing in public transit and biking for the future."
04 Dec 2013:
New Paper Offers Sweeping
Plan to Decarbonize the Global Economy
Eighteen prominent international climate scientists and economists have authored a paper
that seeks to answer the most vexing environmental question facing the planet: How to reverse soaring carbon dioxide emissions and prevent the world from experiencing destabilizing climate change. Their answer, presented in the journal PLOS One,
boils down to this: Offer global leaders a detailed blueprint for decarbonization that involves setting a steadily rising price on carbon, the large-scale deployment of nuclear power and renewable energy, increased research into low-carbon energy technologies, and a reform of forestry and agricultural policies that leads to massive sequestration of CO2 — all while not spending more than 1 percent of global gross economic output. “In terms of economics, comparing a path to decarbonization versus a path of wrecking the planet are not even close,” economist Jeffrey Sachs, a co-author of the paper and director of Columbia University’s Earth Institute, said at a press briefing. “We haven’t shown the path of decarbonzation clearly enough (and) what the real choices are.”
27 Nov 2013:
China Set to Open
World's Second Largest Carbon Market
China is in the midst of launching seven carbon markets, the largest of which will open next month in Guangdong
, the country's most populous province. The carbon markets are a key element of China's plan to cut carbon emissions by up to 45 percent per unit of GDP by 2020. The Guangdong carbon permitting scheme will cap 2013 emissions at 350 tons for 202 companies in the heavily industrialized province. Twenty-nine million permits will be auctioned in the market this year and next, which will be the world's second largest carbon market after the European Union's, dwarfing carbon markets in Australia and California. In 2015 the number of permits auctioned will more than triple, officials said. Shanghai's carbon market launched yesterday and a similar market, about a quarter of the size of Guangdong's, is set to open in Beijing tomorrow. China's seven carbon markets together will regulate roughly 700 to 800 million tons of CO2 annually, roughly equal to the annual emissions of Germany.