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1.State Council Executive will Study the Decision of Controlling Greenhouse Gas Emissions Targets (General Office of the State Council, 2009), retrieved from
2.See for Outline of the 12th Five-Year Plan for Citizens' Economic and Social Development (2011), p. 2.
3.See for Notice of the State Council on Issuing the Work Plan for Greenhouse Gas Emission Control during the 12th Five-Year Plan Period (2011).
4.U.S.-China Joint Announcement on Climate Change and Clean Energy Cooperation, President Obama Announces Ambitious 2025 Target to Cut U.S. Climate Pollution by 26-28 Percent from 2005 Levels (The White House, Washington, DC, 2014), retrieved from
5.General Office of the State Council, Energy Development Strategy Action Plan (2014-2020) ( General Office of the State Council, Beijing, 2014), retrieved from The Plan “…included a cap set on annual primary energy consumption set at approximately 4.8 × 109 tonnes of standard coal equivalent until 2020.” Further, “[an] annual coal consumption will be held below approximately 4.2 × 109 tonnes until 2020….”
6.National Bureau of Statistics, Statistical Communiqué of the People's Republic of China on the 2014 National Economic and Social Development ( National Bureau of Statistics of the People's Republic of China, 2015), retrieved from; Reuters, China's 2014 Economic Growth Misses Target, Hits 24-Year Low (Reuters, 2015), retrieved from
7.OECD Urban Policy Reviews: China 2015 ( OECD Publishing, Paris, 2015), retrieved from; China Has Even More Megacities Than You Thought (Bloomberg, 2015), retrieved from According to the OECD China has added more than 500 × 106 people to its cities over the prior 35 years. It has 15 “megacities,” defined as cities with more than 10 × 106 people.
8. I. Hilton, Reimagining China's Cities: Towards a Sustainable Urbanisation ( Chinadialogue, London, 2013), retrieved from;
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12.See for Population Pyramids of the World from 1950 to 2100; I. Åkerlind, M.S. thesis, Massachusetts Institute of Technology, 2013, Table B-1, p. 126, retrieved from Calculation is as follows: 1 384 976 000 people [projected 2050 population of] × 0.449 vehicles/1000 people = 621.854 × 106 vehicles (low) and 2050 population of 1 384 976 000 people × 0.708 vehicles/1000 people = 980.563 × 106 vehicles (high).
13. D. J. Dudek, J. Margolis, X. Zhao, H. Yang, and H. Qin, Emissions Trading and Institutional, Innovation: Lessons Learned from China's Carbon Trading Pilots ( China Council for International Cooperation on Environment and Development, Beijing, 2014), retrieved from
14.National Development and Reform Commission, Notice of the General Office of National Development and Reform Commission on the Implementation of the Pilot Work of Carbon Emission Right Trading ( National Development and Reform Commission of the People's Republic of China, Beijing, 2011), retrieved from Launch dates were as follows: Shenzhen–June 18, 2013; Shanghai–November 26, 2013; Beijing–November 28, 2013; Guangdong–December 16, 2013; Tianjin–December 26, 2103; Hubei–April 2, 2014; Chongqing–June 19, 2014.
15. T. Whitwell, “ Which may rise to around 15 million during the summer-autumn electronics season, when the hardware plants expand to build the world's Christmas electronic gifts,” Inside Shenzhen: China's Silicon Valley ( The Guardian, 2014), retrieved from
16.Shenzhen Statistics Bureau, “ NBS survey office in Shenzhen,” Shenzhen Statistical Yearbook 2014 ( China Statistics Press, Beijing, 2014), Tables 1 and 2, retrieved from Shenzhen is the smallest of the seven. Hubei province is the largest with 185 900 km2.
17.Shenzhen Statistics Bureau, Statistical Communiqué of Shenzhen on the 2014 Economic and Social Development ( Shenzhen Statistics Bureau, Shenzhen, 2015), retrieved from In 2014, Shenzhen reached 149 500 yuan per capita GDP ranking first sub-provincial cities.
18.Shenzhen Police Department, Vehicle Management Information in 2014 ( Shenzhen Police Department, Shenzhen, 2015).
19.Shenzhen Statistics and Information Bureau, Shenzhen Statistics and Information Yearbook 2001 ( China Statistics Press, Beijing, 2001), Table 4-4. In 2000, there were 350 000 vehicles on the road.
20.Shenzhen's New Car Sales may Behalved Car Dealers are Generally Optimistic About Electric Vehicles ( Southern Daily, 2015), retrieved from
21.Also included in the Shenzhen ETS (but not included in the year one cap) are 197 large public buildings and state government office buildings with floor area over 10 000 m2.
22. J. Jiang, B. Ye, and X. Ma, Energy Policy 75, 17 (2014).
23.Most recently prices in the SZETS have fallen. For example, on May 21, vintage 2013 and 2014 EAs transacted at 43.50 yuan/tonne and 39.30/tonne, respectively.
24.The robust nature of available data contributed to the decision to start with the transport sector. For example, it is known that in 2013, there were 3 bus companies and 83 taxi companies which operate approximately 14 000 buses and 16 000 taxis. Good data is available regarding fuel consumption, passenger capacity, vehicle routes and mileage traveled. Another reason is that greater accountability and operational control (two factors key in the successful implementation of an ETS) can be exercised on fleets of vehicles, as compared to private vehicles.
25.Specification and Guidance for Quantification and Reporting of Greenhouse Gas Emissions of Bus and Taxi Companies ( Shenzhen Market Supervision and Management Bureau, 2015), retrieved from
26.The authors recognize that an upstream/downstream emissions assessment will need to be performed. Such an assessment should quantify: (a) the baseline emissions prior to the inclusion of mobile sources into the ETS; (b) emissions associated with the additional power taken from the grid that is used to charge the electric/new energy vehicles; (c) the net difference between displaced fossil fueled vehicles and the emissions associated with the electricity that is consumed by the electric/new energy vehicles.
27.Under Article 13, it is regulated that the relevant government departments are in charge of regular technical test on vehicle applications, passenger/cargo quantity, durable years, etc. For those vehicles which provide vehicle registration certificate and third party liability insurance, the technical inspection agency for vehicles safety should conduct the inspection and no other additional conditions shall be imposed.
28.Under Article 11, the relevant environmental protection departments should have a regular test on the vehicles' emission and grant the environmental protection qualified inspection label for free to the qualified vehicles. For those qualified vehicles, no other additional tests shall be required.
29.For legal and regulatory obstacles, this project will closely cooperate with relevant departments from the Shenzhen Municipal Government to research how the above mentioned obstacles can be resolved by fully taking advantage of the legislative power of the Shenzhen Special Economic Zone. First, local laws and regulations should be issued on mobile sources to principally regulate carbon emissions trading system for transportation and authorize municipal government to carry out relevant work. Second, in accordance with above laws and regulations, Shenzhen Municipal Government will study and issue specific methods for mobile sources management. Note that in 1992, the Shenzhen Special Economic Zone was granted legislative authority by the Standing Committee of National People's Congress of PRC (“Decision by the Standing Committee of the National People's Congress on Granting Shenzhen Municipal People's Congress and its Standing Committee and People's Government of Shenzhen Municipality Authority to Respectively Formulate Laws and Regulations to be Implemented in Shenzhen Special Economic Zone” which can be accessed at: Regarding obstacles that may be encountered during implementation, the project will cooperate with the Shenzhen's carbon emissions trading management department to optimize procedures for account opening, trading and compliance by non-public vehicle owners participating in carbon emissions trading so as to reduce operation complexity. Meanwhile, training and promotion schemes will be formulated to increase the public's awareness of incorporating motor vehicles into the carbon emissions trading system.

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This paper describes the progress of the research and practice on incorporating mobile sources, especially motor vehicles, into Shenzhen Emissions Trading System. Insights gained through Shenzhen's experience will provide useful insights to others that may have cause to consider the expansion of their Emissions Trading System (ETS) to include mobile sources. In order to incorporate public transportation into the ETS pilot, the city has formulated quantitative greenhouse gas emissions standards for bus and taxi companies, drawn the baselines for energy consumption and carbon emissions of public transportation, and revised local emissions trading regulations. For the further inclusion of non-public transportation vehicles, studies were made on emissions quantification, allowances allocation, non-compliance penalties, and emission reductions certification. In the future, the work will focus on legal safeguards and trading mechanisms.


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