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Clean Air Markets Partnerships - China
Note: The following links are outside of EPA 
The EPA is working with the Ministry of Environmental Protection, Chinese Academy for Environmental Planning (CAEP), and Policy Research Center for Environment and Economy (PRCEE) to build the institutions and infrastructure for sulfur dioxide (SO2) cap and trade programs. This work is conducted under the Memorandum of Understanding (MOU) from December, 2003 between EPA and SEPA. The MOU provides a forum for EPA and SEPA to take a more strategic approach to our cooperation through the Strategy for Clean Air and Energy Cooperation - .
- Memorandum of Understanding (MOU) - English | Chinese
- Strategy for Clean Air and Energy Cooperation - English | Chinese
The EPA's cooperative activities include:
- Assessing the feasibility of implementing a sulfur dioxide (SO2) cap and trade program in China.
- Proposing new standards for measuring emissions from power plants in China, including standards for continuous emission monitors and alternative measurement methods.
- Developing quality assurance programs for emission data from power plants and industrial boilers.
- Conducting training programs for government officials and industry representatives.
- Analyzing the design options for emission trading programs in China.
- Assessing the costs and benefits of controlling sulfur dioxide (SO2) emissions from the Chinese power sector.
- Providing technical assistance for a pilot cap and trade program for Taiyuan, Shanxi province, an industrial city northwest of Beijing.
- Sharing U.S. expertise on the design and institutional requirements for air quality programs.
Under the Strategic Economic Dialogue, EPA and SEPA have agreed to enhance cooperation on the design and implementation of a sulfur dioxide cap and trade program in five key areas:
- Program Design
- Program Operation
- Monitoring, Reporting, and Verification
- Compliance Assessment
- Economic Analysis
EPA and SEPA also jointly sponsor an annual Regional Air Quality Management Conference to discuss emerging science, technologies, and policy approaches to measuring and controlling regional air pollution.
You will need Adobe Acrobat Reader to view some of the files on this page. See EPA's About PDF page to learn more about PDF, and a link to the free Adobe Acrobat Reader.
Resources:
- US-China Joint Economic Study: Economic Analyses of Energy Saving and Pollution Abatement Policies for the Electric Power Sectors of China and the United States. (PDF 34 pp.,5 MB) The study included economic analyses of energy saving and pollution abatement policies for the electric power sectors of China and the United States. The study found that the health and economic benefits of installing flue gas desulfurization equipment at power plants and shutting down small coal-fired boilers would outweigh the costs and that a cap and trade approach could achieve lower emissions at less cost than other approaches.
- Emissions Trading to Improve Air Quality in an Industrial City in China. (PDF 37 pp., 7 MB) The paper summarizes the emission trading pilot program in Taiyuan, Shanxi Province.
- Implementing SO2 Emissions Trading in China . (PDF 22 p., 3 MB) This paper summarizes the opportunities for a sulfur dioxide (SO2) cap and trade program to improve air quality in China.
- SO2 Emissions Trading Program: A Feasibility Study. (PDF 239 pp., 20 MB) The report describes the U.S. experience with emissions trading and explores the opportunities and obstacles to implementing a sulfur dioxide cap and trade program in the Chinese power sector.
- The Experience with Emissions Control and Energy Efficiency Policies in the United States. Volume 1. (PDF 5 pp., 2.8 MB)The paper provides background information about the health and environmental impacts of air pollution from power plants, the structure of the U.S. power sector, the policies to control sulfur dioxide (SO2) from the power sector and sulfates (SO4) from mobile sources, and U.S. approaches to promoting energy efficiency.