second largest investor in renewable energy after China—nearly half the electric capacity added in 2012 was renewable. Proposed stringent regulations of new and existing coal power plants. Emissions trading schemes operating in 10 states. Stringent vehicle emissions standards, estimated to save 6,000 Mt CO2-e between 2011 and 2025. President Barack Obama delivers remarks on climate change, at Georgetown University in Washington, D.C., 25 June, 2013. (Official White House Photo by Lawrence Jackson) Sub-national action in the United States and China Many US states and Chinese provinces are significant economic entities in their own right and some are taking strong action to reduce their emissions. China commenced pilot emissions trading schemes in Shenzhen, Beijing, Shanghai, Guangdong and Tianjin in 2013. More than 1,500 liable entities are expected to participate in these five regions, and the total annual emissions of the regions are more than 970 Mt, about one-and-a-half times Australia’s. Another two schemes are proposed to start in Hubei and Chongqing. These seven areas make up one-third of China’s economy and use about one-fifth of its energy (DIICCSRTE 2013). Much action on climate change in the United States is happening at state and local level—29 states have adopted greenhouse gas reduction targets or limits, with varying stringency, while nine north-eastern states have had an emissions trading scheme for their power sectors since 2009 (the Regional Greenhouse Gas Initiative). California has a separate emissions trading scheme that began in 2013 and linked to the Canadian province of Quebec in January 2014. The scheme will eventually cover most of California’s emissions, which comprise about 7 per cent of total US emissions—equivalent to about 80 per cent of Australia’s annual emissions. The states of Oregon and Washington are also considering introducing carbon pricing. The United States and China are also cooperating on climate change at sub-national levels. The US state of California and the Chinese municipality of Shenzhen are working together on air quality. Both regions have emissions trading schemes in place and have agreed to share policy design and early experiences from these schemes. Table 4.3: Comparing sub-national areas to countries If this area with carbon pricing was a country … … its emissions be about the same as
per cent in its energy blueprint indicative targets below 1990 levels—40 per cent by 2020, 55 per cent by 2030, 70 per cent by 2040 and 80–95 per cent in 2050 United Kingdom 2050 The UK contributes to the EU 2050 targets of 80 per cent below 1990 levels The UK’s goal is supported by legislated carbon budgets from 2008 to 2027. The 2027 carbon budget represents emissions 50 per cent below 1990 levels Considering 2030 targets with EU, decision expected in March 2014 South Africa 2025 42 per cent below levels set in South Africa’s National Climate Change Response South Africa has a ‘peak, plateau and decline’ strategy, where its emissions peak between 2020 and 2025, plateau for about 10 years and then fall New Zealand 2050 50 per cent below 1990 levels Norway 2050 Carbon neutrality (reduce global greenhouse gas emissions by the equivalent of 100 per cent of its own emissions) If an ambitious global climate agreement is achieved, in which other developed countries also take on extensive obligations, Norway has stated it will undertake to achieve carbon neutrality by 2030 Note: Many countries’ targets are conditional on the extent of climate action in other countries. Key countries not in this table have not yet announced post-2020 goals. Sources: UNFCCC 2011 and 2013, and country websites 4.3 Linking global action to Australia