The 12^th Five-Year Plan (FYP) adopted by the Chinese government in March 2011 devotes considerable attention to energy and climate change and establishes a new set of targets and policies for 2011-2015.^[1]  While some of the targets are largely in line with the status quo, other aspects of the plan represent more dramatic moves to reduce fossil energy consumption, promote low-carbon energy sources, and restructure China’s economy.  Among the goals is to “gradually establish a carbon trade market.”  Key targets include:

• A 16 percent reduction in energy intensity (energy consumption per unit of GDP);
• Increasing non-fossil energy to 11.4 percent of total energy use; and
• A 17 percent reduction in carbon intensity (carbon emissions per unit of GDP).