Skip to main content
SpringerLink
Log in

Legal Issues for Implementing CDM Projects in China

  • Chapter
  • First Online:
Legal Issues for Implementing the Clean Development Mechanism in China

  • 657 Accesses

Abstract

This chapter focuses on legal issues for implementing CDM projects in China. Section 2 introduces how CDM projects are implemented in China under the existing legal framework. Section 3 explores the CDM-related regulatory framework. Policies concerning climate change and the other existing regulations and laws supporting the CDM are explored. Part four assesses the enforcement of the CDM-related policies and laws through analyzing the institutional frameworks and different measures adopted to enforce these policies and laws in practice. Based on the above analysis, Sect. 5 discusses the key legal issues for implementing CDM projects through investigating the legal relationships involved, various CDM project-related contracts and their legal effects on the development of CDM projects and sustainable development in China. Section 6 discusses potential CDM project risks under the existing legal framework.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    China’s Agenda 21 1994 (the People’s Republic of China) http://www.acca21.org.cn/english/index.html at 3 September 2011.

  2. 2.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) http://cdm.ccchina.gov.cn/english/NewsInfo.asp?NewsId=905 at 3 September 2011.

  3. 3.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 6.

  4. 4.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 8.

  5. 5.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 7.

  6. 6.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 10.

  7. 7.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art.9.

  8. 8.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 11.

  9. 9.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 4.

  10. 10.

    It comprises of National Development and Reform Commission (NDRC) and Ministry of Science and Technology (MOST) serving as co-chairs of, and Ministry of Foreign Affairs (MFA) serving as the vice chair of, the Board and State Environmental Protection Administration, China Meteorological Administration, Ministry of Finance, and Ministry of Agriculture serving as members.

  11. 11.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 14.

  12. 12.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 15.

  13. 13.

    If no foreign buyer is determined by the time a project is submitted for approval, and in result the price information is not available, it must be indicated in the project design document that the emission reductions generated by the project will be transferred into China’s national account in the CDM registry and can only be transferred out with the authorization of China’s Designated National Authority for CDM.

  14. 14.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 16.

  15. 15.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 17.

  16. 16.

    The time limit for decision-making may be extended to 30 days, with the approval of the Chair or the Vice-chair of NDRC, if a decision could not be made within 20 days. The project applicant should be informed of such a decision and its reasons.

  17. 17.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 24.

  18. 18.

    See above n 3.

  19. 19.

    See also Chap. 2, p. 17.

  20. 20.

    The United Nations Conference on Environment and Development (UNCED), also known as the Earth Summit was a major United Nations conference held in Rio de Janeiro from 3 June to 14 June 1992. The UNCED resulted in the following documents: Rio Declaration on Environment and Development, Agenda 21, Convention on Biological Diversity, Forest Principles and Framework Convention on Climate Change (UNFCCC).

  21. 21.

    See UN Conference on Environment and Development, United Nations, http://www.un.org/geninfo/bp/envirp2.html at 3 September 2011.

  22. 22.

    China’s Agenda 21 1994, ch 1(2).

  23. 23.

    China’s Agenda 21 1994, ch 18(31).

  24. 24.

    China’s Agenda 21 1994, ch 18(32).

  25. 25.

    China’s Agenda 21 1994, ch 18(33).

  26. 26.

    China’s Agenda 21 1994, ch 18(34)(35).

  27. 27.

    China’s Agenda 21 1994, ch 4.

  28. 28.

    Institute for Global Environmental Strategies and Chinese Renewable Energy Industries Association (2005).

  29. 29.

    See Introduction to Five-Year Plans http://www.china.org.cn/95e/95-english1/1.htm at 3 September 2011.

  30. 30.

    See Report on the Outline of the Ninth Five-Year Plan (1996–2000) for National Economic and Social Development and the Long-range Objectives to the Year 2010 http://www.china.org.cn/95e/95-english1/2.htm at 3 September 2011.

  31. 31.

    ‘New Five-Year Plan Gives Priority to Environmental Protection’, People’s Daily, Beijing, 13 March, 2001 http://english.people.com.cn/200103/13/eng20010313_64836.html at 3 September 2011.

  32. 32.

    China’s New Five-Year Plan Gives Priority to Environment (2001).

  33. 33.

    See China’s Eleventh-5 Year Plan (2006–2010), Ch 6 http://en.ndrc.gov.cn/hot/t20060529_71334.htm at 3 September 2011.

  34. 34.

    China’s Eleventh-5 Year Plan (2006–2010), Ch 6.

  35. 35.

    China’s National Assessment Report on Climate Change (I) & (II) (2007).

  36. 36.

    National Development and Reform Commission, the People’s Republic of China, China’s National Climate Change Programme (2007) http://en.ndrc.gov.cn/newsrelease/P020070604561191006823.pdf at 3 September 2011.

  37. 37.

    China’s Policies and Actions for Addressing Climate Change (2008).

  38. 38.

    China’s Policies and Actions for Addressing Climate Change 2008 (Information Office of the State Council of the People’s Republic of China) pt VII. Enhancing International Cooperation on Climate Change.

  39. 39.

    China Medium- and Long- Term Energy Conservation Plan 2004 (National Development and Reform Commission of the People’s Republic of China) http://www.fourfact.com/images/uploads/China_Energy_Saving_Plan.pdf at 3 September 2011.

  40. 40.

    China Medium- and Long- Term Energy Conservation Plan 2004 (National Development and Reform Commission of the People’s Republic of China) 9.

  41. 41.

    Medium- and Long- Term Plan on the Development of Renewable Energy in China 2007 (National Development and Reform Commission of the People’s Republic of China).

  42. 42.

    Medium- and Long- Term Plan on the Development of Renewable Energy in China 2007 (National Development and Reform Commission of the People’s Republic of China) 5.

  43. 43.

    Medium- and Long- Term Plan on the Development of Renewable Energy in China 2007 (National Development and Reform Commission of the People’s Republic of China) 2.

  44. 44.

    Deming Chen (deputy director of NDRC) said about the release of the Medium- and Long- Term Plan on the Development of Renewable Energy on China State Council Press Conference, Beijing, 4 September 2007.

  45. 45.

    China’s Scientific and Technological Actions on Climate Change (2007).

  46. 46.

    China’s Scientific and Technological Actions on Climate Change 2007 (The Ministry of Science and Technology of the People’s Republic of China) 4.

  47. 47.

    Legislators to Deliberate Draft on Climate Change (2009).

  48. 48.

    See ‘The Circular Economy in China’, Cleaner Product in China http://www.chinacp.org.cn/eng/cppolicystrategy/circular_economy.html at 3 September 2011.

  49. 49.

    See ibid.

  50. 50.

    Cleaner Production Promotion Law 2002 (the People’s Republic of China) http://www.chinacp.com/EN/PolicyDetail.aspx?id=39. at 3 September 2011.

  51. 51.

    Circular Economy Law 2008 (the People’s Republic of China) http://www.chinaenvironmentallaw.com/wp-content/uploads/2008/09/circular-economy-law-cn-en-final.pdf at 3 September 2011.

  52. 52.

    Cleaner production in this legislation means the ‘continuous application of measures for design improvement, utilization of clean energy and raw materials, the implementation of advanced processes, technologies and equipment, improvement of management and comprehensive utilization of resources to reduce pollution at source, enhance the rates of resource utilization efficiency, reduce or avoid pollution generation and discharge in the course of production, provision of services and product use, so as to decrease harm to the health of human beings and the environment.’

  53. 53.

    Cleaner Production Promotion Law 2002 (the People’s Republic of China) art 3.

  54. 54.

    Zhang (2004).

  55. 55.

    Circular Economy Law 2008 (the People’s Republic of China) art 29, para 4.

  56. 56.

    Circular Economy Law 2008 (the People’s Republic of China) art 14.

  57. 57.

    For details, see Chap. 2, p. 29.

  58. 58.

    Environmental Protection Law 1989 (the People’s Republic of China) http://www.china.org.cn/english/environment/34356.htm at 3 September 2011.

  59. 59.

    Environmental Protection Law 1989 (the People’s Republic of China) art 13.

  60. 60.

    Environmental Protection Law 1989 (the People’s Republic of China) art 25.

  61. 61.

    Environmental Protection Law 1989 (the People’s Republic of China) art 30.

  62. 62.

    Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, http://www.lawinfochina.com/display.aspx?lib=law&id=6467 at 3 September 2011.

  63. 63.

    See Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 4 ‘Energy conservation constitutes a long-term strategic policy in the nation's economic development’.

  64. 64.

    See Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 6 ‘The State takes the completion of energy conservation targets as an item to assess and evaluate the performance of the local people’s government and the persons in charge thereof’.

  65. 65.

    See Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 15 ‘With respect to the projects inconsistent with compulsory energy conservation standards, the competent examination and approval department shall not approve or verify…’.

  66. 66.

    Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 37–40.

  67. 67.

    Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, s 4.

  68. 68.

    The key energy consuming industries fall into two categories: the industries with over 10 thousand tons of energy consumption volumes per year and the industries with 5 thousand to 10 thousand tons of energy consumption volumes per year specified by the competent departments. They often include electric power, iron and steel, non-ferrous metals, building materials, oil processing, chemical, coal and other industries.

  69. 69.

    See Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 49 ‘The major energy consuming industries should make annual reports concerning energy consumption last year to the energy conservation administrative department’.

  70. 70.

    Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 60–6.

  71. 71.

    Energy Conservation Law 1997 (the People’s Republic of China), last amended in 2007, art 76.

  72. 72.

    Renewable Energy Law 2005 (the People’s Republic of China) art 4 para 2 http://martinot.info/China_RE_Law_Beijing_Review.pdf at 3 September 2011.

  73. 73.

    For details, see Chap. 2, p. 60.

  74. 74.

    Electricity Law 1995 (the People’s Republic of China) http://www.chinahotelsreservation.com/china_law/Electricity_Law_china_law_of_the1143.html at 3 September 2011.

  75. 75.

    Electricity Law 1995 (the People’s Republic of China) art 13.

  76. 76.

    Electricity Law 1995 (the People’s Republic of China) art 14.

  77. 77.

    Electricity Law 1995 (the People’s Republic of China) art 16.

  78. 78.

    Electricity Law 1995 (the People’s Republic of China) art 35.

  79. 79.

    Law of the People’s Republic of China on the Coal Industry 1996 (the People’s Republic of China), last amended in 2011, http://www.lawinfochina.com/display.aspx?lib=law&id=1034 at 3 September 2011.

  80. 80.

    Law of the People’s Republic of China on the Coal Industry 1996 (the People’s Republic of China) art 1.

  81. 81.

    Emission Standard of Coalbed Methane/Coal Mine Gas(on trial)2008 (General Administration of Quality Supervision, Inspection, and Quarantine of the Environmental Protection Ministry of the People’s Republic of China) www.ep.net.cn/cgi-bin/dbbz/doc.cgi?id=1067 at 3 September 2011.

  82. 82.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, http://www.china.org.cn/english/DAT/214773.htm at 3 September 2011.

  83. 83.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, http://www.china.org.cn/english/government/207090.htm at 3 September 2011.

  84. 84.

    Law of the People’s Republic of China on Foreign-Capital Enterprises 1986 (the People’s Republic of China), amended in 2000, http://www.china.org.cn/business/laws_regulations/2007-08/02/content_1219563.htm at 3 September 2011.

  85. 85.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 2 para 1.

  86. 86.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 2 para 3.

  87. 87.

    Law of the People’s Republic of China on Chinese-Fforeign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 5 para 1.

  88. 88.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 8.

  89. 89.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 9.

  90. 90.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 4 para 2.

  91. 91.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 13.

  92. 92.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 14.

  93. 93.

    Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended in 2001, art 15.

  94. 94.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 3.

  95. 95.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 4.

  96. 96.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 8.

  97. 97.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 9.

  98. 98.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 17 para 1.

  99. 99.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 15 para1.

  100. 100.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 20.

  101. 101.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 5.

  102. 102.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 6.

  103. 103.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 23 para 2.

  104. 104.

    Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures 1988 (the People’s Republic of China), amended in 2000, art 25.

  105. 105.

    Enterprise Income Tax Law 2007 (the People’s Republic of China) http://www.thaicombj.org.cn/edit/UploadFile/2008111114927809.pdf at 3 September 2011.

  106. 106.

    Enterprise Income Tax Law 2007 (the People’s Republic of China) art 1.

  107. 107.

    Enterprise Income Tax Law 2007 (the People’s Republic of China) art 25.

  108. 108.

    Enterprise Income Tax Law 2007 (the People’s Republic of China) art 4.

  109. 109.

    Enterprise Income Tax Law 2007 (the People’s Republic of China) art 27.

  110. 110.

    Enterprise Income Tax Law 2007 (the People’s Republic of China) art 34.

  111. 111.

    Implementing Rules for Enterprise Income Tax Law 2009 (the State Council of the People’s Republic of China), for dertails, see http://www.kpmg.com.cn/en/virtual_library/tax/PRCtaxLawBook.pdf at 3 September 2011, 14–39.

  112. 112.

    Implementing Rules for Enterprise Income Tax Law 2009 (the State Council of the People’s Republic of China) art 87 para 2.

  113. 113.

    Implementing Rules for Enterprise Income Tax Law 2009 (the State Council of the People’s Republic of China) art 88.

  114. 114.

    Circular of the State Council on Adjustment of Imported Equipment Taxation Policies 1997 (the State Council of the People’s Republic of China), http://www.szlawyers.net.cn/flfg/ywfl/2008/09/05/24361.html at 3 September 2011.

  115. 115.

    All enterprises and individuals engaged in the sale of goods, manufacturing processing, repairs, and replacement services, and the import of goods within the territory of the People’s Republic of China must pay a basic value-added tax rate of 17%. Some renewable energy for power enterprises is levied a lower rate, such as wind power at 8.5% and small hydropower at 6%.

  116. 116.

    Provided that such items are not among commodities listed in the Catalogue of Imported Commodities not Entitled for Tariff Exemption for Projects with Foreign Investment.

  117. 117.

    Real Right Law 2007 (the People’s Republic of China), http://www.lawinfochina.com/display.aspx?lib=law&id=5920 at 3 September 2011.

  118. 118.

    For details, see below Sect. 4.5.3.1 p. 147.

  119. 119.

    See Chap. 3, p. 87.

  120. 120.

    Paris Convention for the Protection of Industrial Property, opened for signature 20 March 1883, http://www.wipo.int/treaties/en/ip/paris/trtdocs_wo020.html at 3 September 2011.

  121. 121.

    Agreement on Trade-Related Aspects of Intellectual Property Rights, opened for signature 15 April 1994, 1869 UNTS 299, 33 ILM 1197 (entered into force 1 January 1995), http://www.worldtradelaw.net/uragreements/tripsagreement.pdf at 3 September 2011.

  122. 122.

    Convention and the Treaty on Intellectual Property in Respect of Integrated Circuits, opened for signature 26 May 1989, http://ipmall.info/hosted_resources/lipa/copyrights/Treaty%20on%20Intellectual%20Property%20in%20Respect%20of%20Integrated%20Circuits.pdf at 3 September 2011.

  123. 123.

    Patent Cooperation Treaty, opened for signature 19 June 1970, http://www.wipo.int/pct/en/texts/articles/atoc.htm at 3 September 2011.

  124. 124.

    National Technology Transfer Promotion Regulations 2007 (The Ministry of Science and Technology of the People’s Republic of China).

  125. 125.

    The 30 Years’ Development of Environmental Protection in China (2008).

  126. 126.

    Ibid.

  127. 127.

    Ibid.

  128. 128.

    China’s Parliament Meets to Hear Gov’t Reshuffle Plan (2008).

  129. 129.

    See Mission and Ministry of Environmental Protection of the People’s Republic of China (2008).

  130. 130.

    Environmental Protection Law 1989 (the People’s Republic of China) art 7.

  131. 131.

    Environmental Protection Law 1989 (the People’s Republic of China) art 7.

  132. 132.

    Environmental Protection Law 1989 (the People’s Republic of China) art 7.

  133. 133.

    Environmental Protection Law 1989 (the People’s Republic of China) art 16.

  134. 134.

    The local standards for the discharge of pollutants set by the local governments should be more stringent than the national standards.

  135. 135.

    These ministries and agencies include the National Development and Reform Commission (NDRC), the Ministry of Foreign Affairs, the Ministry of Science and Technology, China Meteorological Administration, Environmental Protection Ministry, Ministry of Finance, Ministry of Commerce, Ministry of Agriculture, Ministry of Construction, Ministry of Communications, Ministry of Water Resources, State Forestry Administration, Chinese Academy of Science, State Ocean Administration, Civil Aviation Administration, National Bureau of Statistics and the Ministry of Land of Resources.

  136. 136.

    National Development and Reform Commission, the People’s Republic of China, China’s National Climate Change Programme (2007) 56, www.ccchina.gov.cn/WebSite/CCChina/UpFile/File188.pdf at 3 September 2011.

  137. 137.

    Main Functions of Departments of the NDRC (2005).

  138. 138.

    Other approaches that can be used to establish a DNA are as follows: (1) within the existing UNFCCC focal point for the CDM, to be found on the UNFCCC website; (2) as an independent and new office; and (3) through a specific Government Ministry.

  139. 139.

    Brief Introduction of the NDRC (2011) National Development and Reform Commission, http://en.ndrc.gov.cn/brief/default.htm at 3 September 2011.

  140. 140.

    Legal Issues Guidebook to the Clean Development Mechanism (2004).

  141. 141.

    Above n 137.

  142. 142.

    Castro and Michaelowa (2007).

  143. 143.

    The details of the budget are not available due to the fact that the relevant information is not transparent and available in China.

  144. 144.

    Xin (2007).

    According to Xie Zhenhua, vice-minister of the NDRC, by the end of October 2007 the NDRC had approved 885 CDM projects. If those projects are implemented, it will trade a greenhouse gas emission reduction of 1,500 million tons of carbon dioxide, with a turnover of about $15 billion, more than $3 billion of which will be injected into the new CDM fund.

  145. 145.

    See Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 2.

  146. 146.

    See Article 2 of Measures for the Authorized Registration Management of the Foreign Enterprises, ‘the management of foreign enterprises registration shall apply the principle of registration management by State Administration for Industry and Commerce and authorized local administrations for Industry and Commerce…’

  147. 147.

    See, e.g., Environmental Protection Law 1989 (the People’s Republic of China) art 35–40.

  148. 148.

    See, e.g., Environmental Protection Law 1989 (the People’s Republic of China) art 45.

  149. 149.

    See, e.g., Environmental Protection Law 1989 (the People’s Republic of China) art 41–2.

  150. 150.

    See, e.g., Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures 1979 (the People’s Republic of China), amended in 2001, art13-4 and Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures (the People’s Republic of China), amended in 2001, art 26.

  151. 151.

    Environmental Protection Law 1989 (the People’s Republic of China) art 43–4.See also Criminal Law 1979 (the People’s Republic of China), last amended in 1997, pt 2 ch5 s6 http://www.lawinfochina.com/display.aspx?lib=law&id=354 at 3 September 2011.

  152. 152.

    Criminal Law 1979 (the People’s Republic of China), amended in 1997, pt 2 ch9 art 408.

  153. 153.

    Criminal Law 1979 (the People’s Republic of China), amended in 1997, pt 2 ch3 s4.

  154. 154.

    Yang (1995).

  155. 155.

    The name ‘free rider’ comes from a common textbook example: someone using public transportation without paying the fare. If too many people do this, the system will not have enough money to operate. In economics and political science, ‘free riders’ are those who consume more than their fair share of a public resource, or shoulder less than a fair share of the costs of its production. Free riding is usually considered to be an economic ‘problem’ only when it leads to the non-production or under-production of a public good, or when it leads to the excessive use of a common property resource. The free rider problem is the question of how to limit free riding (or its negative effects) in these situations http://en.wikipedia.org/wiki/Free_rider_problem at 3 September 2011.

  156. 156.

    Yang, above n 154.

  157. 157.

    See Information Office of the State Council of the People’s Republic of China, China’s Energy Conditions and Policies (2007).

  158. 158.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 3.

  159. 159.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 16.

  160. 160.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 18, item 1.

  161. 161.

    As mentioned above, only the Chinese funded or Chinese-holding enterprises within the territory of China are eligible to conduct CDM projects.

  162. 162.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 10, item 2.

  163. 163.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 10, item 3.

  164. 164.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 1.

  165. 165.

    Administrative Permission Law 2003 (the People’s Republic of China), http://www.gov.cn/english/laws/2005-09/07/content_29926.htm at September 2011.

  166. 166.

    Administrative Permission Law 2003 (the People’s Republic of China) art 16.

  167. 167.

    Wu (2008).

  168. 168.

    See, e.g., ibid.

  169. 169.

    For example, with the main purpose of encouraging the import of advanced foreign technology and equipment, the Chinese Government formulated the Circular of the State Council on Adjustment of Imported Equipment Taxation Policies in 1997 (the Circular) stating that “starting from January 1, 1998, imported equipment of domestic investment projects and foreign investment projects encouraged by the State shall enjoy exemption from tariff and import-stage value-added tax within the special scope.” Circular of the State Council on Adjustment of Imported Equipment Taxation Policies 1997 (the State Council of the People’s Republic of China), http://www.cn-teacher.com/yyjy/flyy/flyy1/200705/209340.html at 2 September 2011.

  170. 170.

    According to Article 4 of the Measures, the priority areas for CDM projects in China are energy efficiency improvement, development and utilization of new and renewable energy, and methane recovery and utilization.

  171. 171.

    Market failure is a term used to describe a situation in which markets do not efficiently allocate goods and services. Prices do not reflect all publicly available information. Market failures are often associated with non-competitive markets, externalities or public goods. The existence of a market failure is often used as a justification for government intervention in a particular market.

  172. 172.

    Capoor and Ambrosi (2007).

  173. 173.

    Ibid.

  174. 174.

    See above n 140, 99.

  175. 175.

    See ibid 112–8.

  176. 176.

    Ibid 98.

  177. 177.

    Ibid 112–3.

  178. 178.

    Ibid.

  179. 179.

    Ibid 113.

  180. 180.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art. 24.

  181. 181.

    Above n 140, 112–3.

  182. 182.

    Ibid.

  183. 183.

    Ibid 116.

  184. 184.

    Ibid 113–4.

  185. 185.

    Ibid 101.

  186. 186.

    Ibid 102.

  187. 187.

    Ibid.

  188. 188.

    This is according to the results of field work conducted by the author.

  189. 189.

    In fact, China has established three domestic environmental exchanges. For details, see Chap. 7, Establishing a domestic carbon trading scheme 393–394.

  190. 190.

    For example, ‘The seller will be responsible for the costs at certification and issuance of CERs stage of the CDM project.’ For more details, see above n 140, 116.

  191. 191.

    For details, see ibid.

  192. 192.

    Ibid 117.

  193. 193.

    Ibid.

  194. 194.

    For details, see ibid 97.

  195. 195.

    Ibid 116–8.

  196. 196.

    Ibid 97.

  197. 197.

    Ibid 98.

  198. 198.

    Ibid 118.

  199. 199.

    Ibid.

  200. 200.

    For details, see ibid 120–1.

  201. 201.

    Ibid 120.

  202. 202.

    Ibid 121.

  203. 203.

    Castro and Michaelowa, above n 142, 67.

  204. 204.

    Ibid.

  205. 205.

    Ibid.

  206. 206.

    Ibid.

  207. 207.

    Ibid.

  208. 208.

    Ibid.

  209. 209.

    For more details, see above n 140, 48–49.

  210. 210.

    Ibid 65.

  211. 211.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 24.

  212. 212.

    Constitution of the People’s Republic of China 1982 (the People’s Republic of China), last amended in 2004, art 9, item 1 http://english.people.com.cn/constitution/constitution.html at 5 September 2011.

  213. 213.

    See also Wang (2008).

  214. 214.

    Ibid.

  215. 215.

    For the definition of the property-based approach to environmental protection, see Adler (2001).

  216. 216.

    For more details, see Ostrom (2000).

  217. 217.

    See e.g., Koch (2005).

  218. 218.

    Cray (2010).

  219. 219.

    Ibid 58.

  220. 220.

    Ibid 66.

  221. 221.

    Yandle (1999).

  222. 222.

    Ibid 16.

  223. 223.

    It is a term used in classical economic theory (see Laissez-Faire Economics), denoting the individual’s rational deployment of labor or resources in the marketplace, in systematic pursuit of his or her own self-interest.

  224. 224.

    See the Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 15, item 4.

  225. 225.

    Koch, above n 217, 11.

  226. 226.

    Most of CDM project owners do not have the corresponding expertise. For more details, see Chap. 3 Sect. CDM awareness 129. At the initial stage of the development of CDM projects in China, the CDM capacity buildings were for the government officials. However, this situation has changed as more and more projects get registered.

  227. 227.

    ‘China, as dominant market leader in the CDM projects since 2002, influenced the overall market price through its informal policy of requiring a minimum acceptable price before providing DNA approval to projects.’ See Capoor and Ambrosi, above n 172.

  228. 228.

    Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 11.

  229. 229.

    See e.g. China’s Twelve Five-Year Plan (2011–2015). [中国国民经济和社会发展第十二个五年规划纲要], Ch 21, http://www.gov.cn/2011lh/content_1825838.htm at 5 September 2011.

  230. 230.

    For details, see below section.

  231. 231.

    See, e.g., Law of the People’s Republic of China on Chinese - Foreign Equity Joint Ventures 1979 (the People’s Republic of China), last amended on 15 March 2001, art. 4, para. 3 ‘The parties to the venture shall share the profits, risks and losses in proportion to their contributions to the registered capital.’ http://www.china.org.cn/business/laws_regulations/2007-06/22/content_1214773.htm at 5 September 2011.

  232. 232.

    Esty and Ivanova (2004). See also, Chertow and Esty (ed) (1997).

  233. 233.

    This is short for Agreement on Trade-Related Aspects of Intellectual Property Rights, Annex 1C of the Marrakesh Agreement Establishing the World Trade Organization, signed in Marrakesh, Morocco on 15 April 1994.

  234. 234.

    Sanusi (2005).

  235. 235.

    For details, see Chap. 2 Sect. CDM Project Cycle 29.

  236. 236.

    See Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 15.

  237. 237.

    Castro and Michaelowa, above n 142, 52–59.

  238. 238.

    Ibid

  239. 239.

    Ibid.

  240. 240.

    Legislation Law of the People’s Republic of China 2000 (the People’s Republic of China) art 7, http://www.gov.cn/english/laws/2005-08/20/content_29724.htm at 5 September 2011.

  241. 241.

    The Chinese Government Has Proposed the Draft of Energy Law to the National People’s Congress (2009).

  242. 242.

    Above n 140, 94.

  243. 243.

    See ibid 95.

  244. 244.

    Ibid 96.

  245. 245.

    See Measures for the Operation and Management of CDM projects in China 2005 (the People’s Republic of China) art 12.

  246. 246.

    Above n 140, 98.

  247. 247.

    See Chap. 5, pp. 178–180.

References

Articles/Books/Reports

Legislation and Domestic Documents

Treaties and International Documents

Other Sources

Speeches and Conferences

  • China State Council Press Conference about the release of the Medium- and Long- Term Plan on the Development of Renewable Energy, Beijing, 4 September 2007

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. China Institute of Boundary and Ocean Studies, Wuhan University, Wuhan, Hubei, People’s Republic of China

    Xiaoyi Jiang

Authors
  1. Xiaoyi Jiang
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Jiang, X. (2013). Legal Issues for Implementing CDM Projects in China. In: Legal Issues for Implementing the Clean Development Mechanism in China. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-24737-8_4

Download citation

Publish with us

Policies and ethics

Search

Navigation