Asia & the Pacific

Guangdong Province ranks first in economic output among China’s provinces and will play a major role in achieving China’s national climate-change goals. This paper examines the progress of Guangdong Province’s carbon dioxide emissions trading system (ETS) in reducing emissions; design features of the system; challenges it faces with regard to further development; and its relationship to China’s new national ETS.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

1. We must learn from and remember the lessons of the past—while recognizing that Fukushima is not going to “happen again” as future accidents will have their own characteristics; while remembering the past, we must also avail ourselves of advances in seismology, climatology, engineering, etc.

President-elect Joe Biden’s decision to create a new cabinet-level position for climate-related issues — and to choose so prominent a figure as former Secretary of State John Kerry to fill it — demonstrates Biden’s sincerity over putting climate at the very center of U.S. foreign policy. It is easy to understate the importance of this appointment, given the flurry of czars created by most new administrations.

I do not think it’s likely that Kim Jong-un will conduct another test of ICBMs—since Trump had repeatedly drawn a bright red line there. Kim Jong-un and his experts would rightly be worried that were they to cross this line, especially in an election season, Trump would respond by attacking North Korean ICBM launch sites—as he’s signaled he would do. 

In this report, the authors conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries.

For decades, Singapore has been a premier refinery hub and gatekeeper between Asia and the Middle East, but its position is increasingly threatened as producer countries are shifting into the downstream activities that helped make Singapore the “Houston of Asia”. Oil and petrochemicals drive about one quarter of Singapore’s net exports. Greater competition in the global oil and gas value chain could take a heavy toll on the city-state’s national budget and economic growth prospects.

President Trump’s trip Sunday to the Demilitarized Zone between North and South Korea and his historic decision to cross briefly into North Korea was a made-for-TV diplomatic spectacular. But it was also a test of whether personal diplomacy can trump (so to speak) longstanding definitions of a country’s national interests by persuading North Korean leader Kim Jong Un to end his nuclear weapons program.