Local interests meet global regime: China’s subnational politics in clean development mechanism of Kyoto Protocol

As the Kyoto Protocol enters its second commitment phase, local states are adapting to the new reality. An analysis of the responses of three provincial authorities (Guangdong, Zhejiang and Shanghai) demonstrates that local authorities of China have sought project development that offers capital and technological transfers from Annexe 1 parties made possible by the Clean Development Mechanism (CDM), one of the flexibility mechanisms of the global climate regime. Apart from offering technical advisory and assistance to interested firms, extending fiscal incentives and regulatory supports and leveraging their connections with central counterparts and international partners to facilitate the local market development, Guangdong and Shanghai have also been proactively responding to the changing market and policy outlook of the CDM framework, piloting carbon emissions reduction strategies at the local level to foster their interests. These affirm the relevance of local interests and help complete our understanding of the subnational dynamics underlying the global climate regime.