China reaches climate agreement with California

China has reached an agreement to address its carbon emissions with assistance from the California Bay Area Council.


An international framework will be established so that both jurisdictions will be able to collaborate on clean energy policy.


China is the world’s largest emitting country, representing over 25% of global emissions according to a 2012 Thomson Reuters report.


The country has relied heavily on coal-fired electric plants to power its economy, resulting in significant environmental consequences.


In some of its larger cities, China has had to warn its citizens to remain indoors due to the toxicity of the air.


To address its poor air quality, China has launched several carbon markets that will encourage businesses to improve the energy efficiency of their operations or pay a steep price.


California’s own carbon market started this year, and will grow to include Quebec in 2014.


This early agreement between China and California could lead towards market linkage in the future.