{"id":3916,"date":"2022-04-18T17:45:23","date_gmt":"2022-04-18T09:45:23","guid":{"rendered":"https:\/\/igdptest.symbol365.com\/en\/?post_type=insight&#038;p=3916"},"modified":"2026-08-19T16:54:12","modified_gmt":"2026-08-19T08:54:12","slug":"improving-the-national-carbon-emissions-trading-scheme-to-support-chinas-climate-goals","status":"publish","type":"insight","link":"https:\/\/www.igdp.cn\/en\/insights\/improving-the-national-carbon-emissions-trading-scheme-to-support-chinas-climate-goals\/","title":{"rendered":"Improving the National Carbon Emissions Trading Scheme to Support China&#8217;s Climate Goals"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3916\" class=\"elementor elementor-3916\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-594917d elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"594917d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9e527b8\" data-id=\"9e527b8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4efe495 elementor-widget elementor-widget-igdp_insight_detail_hero\" data-id=\"4efe495\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"igdp_insight_detail_hero.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"row-report1\">\n\t\t<div class=\"wp\">\n\t\t\t\t<div class=\"cur cur1\">\n\t\t<a href=\"\/en\/\">Home<\/a>\n\t\t<i>\/<\/i>\n\t\t<a href=\"\/en\/insights\/\">Insights<\/a>\n\t\t<i>\/<\/i>\n\t\t<span>Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals<\/span>\n\t<\/div>\n\t\t\t\t<div class=\"m-report1 wow fadeInUp\">\n\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t<div class=\"inner\">\n\t\t\t\t\t\t<div class=\"tit\">Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"line\"><\/div>\n\t\t\t\t\t\t<div class=\"desc\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon3.svg);\">Chinese<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon4.svg);\">APR 2022<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon5.svg);\">Report<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon6.svg);\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Green Economics<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Power<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">Summary:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">This report analyzes the design and early performance of China&#039;s national carbon emissions trading scheme (ETS), which launched in 2021 covering the power sector, and offers policy recommendations to strengthen it as a central pillar of China&#039;s decarbonization strategy. It recommends introducing a price collar (price floor and ceiling) to stabilize carbon prices and manage economic risks, expanding coverage to include cement, aluminum, and steel sectors, transitioning from an intensity-based to an absolute emissions cap, and gradually introducing allowance auctions through a consignment mechanism to improve price signals and market efficiency. It also emphasizes the importance of robust monitoring, reporting, and verification (MRV) systems, including leveraging existing air pollutant data to verify fuel combustion reports, increasing penalties for data fraud, and improving transparency. Beyond ETS design, the report highlights the need for policy coherence\u2014particularly completing power sector reform to enable economic dispatch\u2014and underscores the alignment between a stronger carbon market and China&#039;s broader economic strategy of fostering domestic innovation and competitiveness in clean technologies.<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">Suggested citation:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">Chris Busch, Hu Min, Chen Meian. (2022).\u00a0Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals. Energy Innovation, Institute of Finance and Sustainability, and Institute for Global Decarbonization Progress (iGDP).<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">License:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\" class=\"link\">Creative Commons Attribution 4.0 International License (CC BY 4.0)<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"igdp-report-download-buttons\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"\/en\/wp-content\/uploads\/2022-04-IGDP-Report-ZH-Improving-the-National-Carbon-Emissions-Trading-Scheme-to-Support-Chinas-Climate-Goals.pdf\" class=\"g-btnr1\"><span style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon7.svg);\">download zh<\/span><\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t<div class=\"pic\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"\/en\/wp-content\/uploads\/Screenshot-2026-08-18-at-5.46.58-PM.jpg\" alt=\"Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c051791 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"c051791\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a15c30f\" data-id=\"a15c30f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bb5cb98 elementor-widget elementor-widget-igdp_insight_detail_related\" data-id=\"bb5cb98\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"igdp_insight_detail_related.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"row-report4\" id=\"page09\">\n\t\t<div class=\"wp\">\n\t\t\t<div class=\"g-titr1 wow fadeInUp\">Related<\/div>\n\t\t\t<ul class=\"ul-report4 wow fadeInUp\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/www.ndrc.gov.cn\/wsdwhfz\/202607\/t20260727_1406690.html\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Green Power Consumption Faces New Challenges<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">With the rapid growth in installed capacity, the core challenge facing the power system is shifting from \u201cwhether we can generate more green electricity\u201d to \u201cwhether we can effectively utilize green electricity at the right time and place.\u201d<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Interview<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUL 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"511\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/eps1-768x511.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/eps1-768x511.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/eps1-300x200.jpg 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/eps1-1024x681.jpg 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/eps1-1536x1022.jpg 1536w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/eps1-2048x1363.jpg 2048w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/finance.sina.com.cn\/esg\/ep\/2026-07-08\/doc-inihaiea8237089.shtml?cre=tianyi&#038;mod=pchp&#038;loc=17&#038;r=0&#038;rfunc=79&#038;tj=cxvertical_pc_hp&#038;tr=12\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">iGDP\u2019s Hu Min: How Can We \u201cAccess\u201d and \u201cEffectively Utilize\u201d Green Power?<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">The 2026 Summer Davos Forum (the 17th Annual Meeting of the World Economic Forum\u2019s New Champions) recently concluded in Dalian, Liaoning. With \u201cScaling Innovation\u201d as its theme, the forum brought together more than 1,700 delegates from over 90 countries and regions to discuss five core topics.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Interview<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUL 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img decoding=\"async\" width=\"768\" height=\"576\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/708-768x576.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/708-768x576.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/708-300x225.jpg 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/708-1024x768.jpg 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/708-1536x1152.jpg 1536w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/708.jpg 1707w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/mp.weixin.qq.com\/s\/s58SrbWNWFR2cimC1zjcVw?scene=1\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">When Computing Power Starts Competing for Electricity: Why Can Companies Not Access Green Power?<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">AI is driving a new wave of computing infrastructure development and has brought electricity demand to the forefront of industry competition. A seemingly contradictory phenomenon is that while China\u2019s installed capacity of renewable energy is growing rapidly, companies still do not have enough green electricity available.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Interview<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUL 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img decoding=\"async\" width=\"768\" height=\"411\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/\u622a\u5c4f2026-08-19-01.35.20-768x411.png\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/\u622a\u5c4f2026-08-19-01.35.20-768x411.png 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/\u622a\u5c4f2026-08-19-01.35.20-300x160.png 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/\u622a\u5c4f2026-08-19-01.35.20-1024x548.png 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/\u622a\u5c4f2026-08-19-01.35.20.png 1286w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"https:\/\/dialogue.earth\/zh\/4\/60136155\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">The EU Pushes for Domestic Manufacturing: Where Will China\u2019s Clean Technology Products Go?<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">In its document, the European Commission explicitly stated that China accounts for more than 80 percent of global production capacity in the battery manufacturing and solar photovoltaic sectors; at the same time, the European wind power industry is facing cost pressures from low-priced imports from China. On April 27, China\u2019s Ministry of Commerce responded by stating that the bill constitutes \u201cserious institutional discrimination\u201d and will undermine fair competition.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Interview<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUN 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"507\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-768x507.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-768x507.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-300x198.jpg 300w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-1024x675.jpg 1024w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-1536x1013.jpg 1536w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/in604-2048x1351.jpg 2048w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/eu-carbon-border-adjustment-mechanism-cbam-progress-and-prospects\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">The EU&#8217;s Carbon Border Adjustment Mechanism<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This report analyzes the European Union&#039;s Carbon Border Adjustment Mechanism (CBAM) as it transitions from its preparatory phase to full implementation, focusing on three critical policy areas with direct implications for Chinese exporters: the recognition of carbon prices paid in producing countries, the potential conditional acceptance of international carbon credits, and the technical alignment between CBAM and the EU ETS free allowance benchmarks. It combines systematic legal review of the CBAM Regulation and its implementing acts with practical policy assessment, drawing on official EU legislative documents, technical studies from the Joint Research Centre (JRC) and the European University Institute (EUI), and expert reports from Adelphi and the Climate Club. The research examines the regulatory texts, identifies remaining uncertainties, and derives forward-looking policy recommendations for Chinese authorities and enterprises.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Report<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">APR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"1086\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-768x1086.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-768x1086.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-212x300.jpg 212w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-724x1024.jpg 724w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-1086x1536.jpg 1086w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM.jpg 1124w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/quantifying-the-long-term-impact-of-the-carbon-border-adjustment-mechanism-on-the-chinese-steel-industry\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Quantifying the Long-Term Impact of the Carbon Border Adjustment Mechanism on the Chinese Steel Industry<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This paper analyzes the long-term impact of the European Union&#039;s Carbon Border Adjustment Mechanism (CBAM) on China&#039;s steel industry, with a focus on quantifying the resulting cost burden and identifying the key drivers and mitigating factors. It employs a dynamic, process-level scenario-based model that links three steel production routes with their emission intensities, energy transition pathways, carbon pricing systems (EU ETS and China&#039;s national carbon market), and trade flows through 2050. The model integrates three sub-modules\u2014inflation and exchange rates, CBAM certificate cost calculation, and China&#039;s steel low-carbon transformation\u2014to simulate CBAM obligations across multiple scenarios, with sensitivity analyses examining the effects of EU ETS carbon prices, domestic carbon market inclusion, electricity decarbonization, and hydrogen utilization on total certificate costs.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Academic Journal Article<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">MAR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"1005\" src=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-768x1005.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-768x1005.jpg 768w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-229x300.jpg 229w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-783x1024.jpg 783w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-1174x1536.jpg 1174w, https:\/\/www.igdp.cn\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM.jpg 1220w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t<\/ul>\n\t\t<\/div>\n\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This report analyzes the design and early performance of China&#8217;s national carbon emissions trading scheme (ETS), which launched in 2021 covering the power sector, and offers policy recommendations to strengthen it as a central pillar of China&#8217;s decarbonization strategy. It recommends introducing a price collar (price floor and ceiling) to stabilize carbon prices and manage economic risks, expanding coverage to include cement, aluminum, and steel sectors, transitioning from an intensity-based to an absolute emissions cap, and gradually introducing allowance auctions through a consignment mechanism to improve price signals and market efficiency. It also emphasizes the importance of robust monitoring, reporting, and verification (MRV) systems, including leveraging existing air pollutant data to verify fuel combustion reports, increasing penalties for data fraud, and improving transparency. Beyond ETS design, the report highlights the need for policy coherence\u2014particularly completing power sector reform to enable economic dispatch\u2014and underscores the alignment between a stronger carbon market and China&#8217;s broader economic strategy of fostering domestic innovation and competitiveness in clean technologies.<\/p>\n","protected":false},"featured_media":3917,"template":"","meta":{"_acf_changed":false,"igdp_summary":"This report analyzes the design and early performance of China's national carbon emissions trading scheme (ETS), which launched in 2021 covering the power sector, and offers policy recommendations to strengthen it as a central pillar of China's decarbonization strategy. It recommends introducing a price collar (price floor and ceiling) to stabilize carbon prices and manage economic risks, expanding coverage to include cement, aluminum, and steel sectors, transitioning from an intensity-based to an absolute emissions cap, and gradually introducing allowance auctions through a consignment mechanism to improve price signals and market efficiency. It also emphasizes the importance of robust monitoring, reporting, and verification (MRV) systems, including leveraging existing air pollutant data to verify fuel combustion reports, increasing penalties for data fraud, and improving transparency. Beyond ETS design, the report highlights the need for policy coherence\u2014particularly completing power sector reform to enable economic dispatch\u2014and underscores the alignment between a stronger carbon market and China's broader economic strategy of fostering domestic innovation and competitiveness in clean technologies.","igdp_featured_media":3917,"igdp_download_file":1631,"igdp_external_url":"","igdp_key_info":"","igdp_related_insights":[]},"insight_type":[48],"insight_region":[45],"igdp_topic":[149,152],"class_list":["post-3916","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_type-report","insight_region-china-national","igdp_topic-green-economics","igdp_topic-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight\/3916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":13,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight\/3916\/revisions"}],"predecessor-version":[{"id":4791,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight\/3916\/revisions\/4791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/media\/3917"}],"wp:attachment":[{"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/media?parent=3916"}],"wp:term":[{"taxonomy":"insight_type","embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight_type?post=3916"},{"taxonomy":"insight_region","embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/insight_region?post=3916"},{"taxonomy":"igdp_topic","embeddable":true,"href":"https:\/\/www.igdp.cn\/en\/wp-json\/wp\/v2\/igdp_topic?post=3916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}