Title: Mitigating China’s Greenhouse Gas Emissions in the Last Decade: Clear Target or Blurred Path?

Author: Liu Xiaobao

Abstract: Emissions trading is deemed as a policy instrument of efficiency to mitigate greenhouse gas emissions. China contributes a large share of the global greenhouse gas emissions, making it necessary for China to seek ways to mitigate those emissions. China started its emissions trading pilot scheme in 2013 and consequently launched its national market online in 2021. China’s target to mitigate its greenhouse gas emissions is clearly manifested in building its carbon market. However, the process of rule-making lags behind the development of the carbon market, which makes the path of China’s carbon market somewhat blurred. Currently, there is merely a ministerial regulation issued by the Ministry of Ecology and Environment serving as the skeletal legal framework having low legal authority. The present rules of China’s carbon market are largely in the form of policies, which results in uncertainty and unstable expectations in the market. The development of China’s carbon market should be rule-based. There are several factors to take into consideration to steadily accelerate the development of China’s carbon market. Meanwhile, it is necessary for China to cooperate with other countries for environmental governance and to address the potential challenges.

Keywords: Emissions Trading Scheme, China’s Carbon Market, China’s Policy of Climate Change, Cooperation of International Carbon Market