Asia & the Pacific

"Given Beijing's new emphasis on the environment, an even bigger challenge will be addressing the global dimensions of its pollution, the effects of which don't stop at the water's edge. China is by far the largest source of air pollution among all Asian countries, including India, and Chinese emissions negatively affect air quality in a host of neighboring countries, particularly Japan. Chinese air pollution is even degrading air quality in the United States."

This brief looks at the so-far inadequate responses of the Chinese government and makes the case that new institutions are needed to allow China to meet this growing challenge.

"Although the country has successfully imported model environmental policies, it has yet to develop the complex institutional infrastructure needed to make them work, especially an independent judiciary, a capable bureaucracy, and effective co-operation between central and local governments."

"A legitimate US climate policy regime enables other countries to create their own domestic policies. Many countries have long been ready to act on climate change, but struggled to justify climate policies to their own people when the United States, the largest pollution emitter in the world, was not seriously pursuing emissions reductions."

"Beijing needs to stop relying on technology to avoid making hard choices about scarce resources. The United States and the rest of the world need to push the Chinese government to make its development more sustainable through political reform, lest China's economy and social stability be endangered."

"China's major cities have long been notorious for their high levels of air and water pollution, but such visible signs of threats to human health are thrusting environmental hazards into the public eye like never before. The Chinese government has taken some steps to address public concern at these hazards, but if either history or the experience of other countries is any guide, Beijing needs to take public opinion seriously to avoid future environmental crises."

"Beijing needs to learn, as other nations have, that popular participation is necessary to force entrenched business and bureaucratic interests to help clean up the environment. Until this happens, the US embassy's air quality monitor will continue to say what Chinese officials will not: China and its capital are gasping for air."

The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. This paper addresses an important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases.