scholarly journals A Linkage Framework for the China National Emission Trading System (CETS): Insight from Key Global Carbon Markets

2021 ◽  
Vol 13 (13) ◽  
pp. 7459
Author(s):  
Chunyu Pan ◽  
Anil Kumar Shrestha ◽  
Guangyu Wang ◽  
John L. Innes ◽  
Kevin Xinwei Wang ◽  
...  
Keyword(s):  
Ghg Emissions ◽  
Emission Trading ◽  
Carbon Market ◽  
Market Liquidity ◽  
Carbon Markets ◽  
Design Elements ◽  
Global Emission ◽  
Challenges And Opportunities ◽  
Global Carbon ◽  
Global Carbon Market

Given that international collaborative efforts to reduce greenhouse gas (GHG) emissions are urgent and crucial, a critical understanding of challenges and opportunities of linking China’s newly established national ETS with existing domestic or regional ETSs is essential in order to achieve global emission targets, and may attract other jurisdictions to join in global carbon market development. In this backdrop, we analyzed the experiences, lessons, and insights from three key global carbon markets, namely North America, the EU and China, in terms of the barriers to linking the global carbon market, with a focus on China, using thematic analysis. The four most commonly cited linkage design elements (barriers) were the legal basis; monitoring, reporting, and verification; political feasibility; and the price-management mechanism. Like-minded jurisdictions with similar political views and design features will have a higher chance of linking. Additionally, sustaining market liquidity, widening sectoral coverage, minimizing carbon leakage, ensuring offset quality, and a transparent allowance and cap setting rules are crucial steps towards linkage. These outcomes can be used as an ETS linkage-ready design framework for CETS and ETS under development to overcome barriers to future international ETS linkages.

Linking Carbon Markets: The Climate Change Silver Bullet?

2009 ◽  
Vol 20 (6) ◽  
pp. 901-926 ◽  
Author(s):  
Alyssa Gilbert
Keyword(s):  
Climate Change ◽  
Emissions Trading ◽  
Policy Design ◽  
Global Climate ◽  
Carbon Market ◽  
Policy Framework ◽  
The Political ◽  
Carbon Markets ◽  
Global Carbon ◽  
Global Carbon Market

With the rising popularity of emissions trading schemes and the private sector call for a global carbon market, it seems as though there is the chance to solve climate change by simply providing a clear price signal. But how easy will this be, both technically and practically? This paper provides an overview of the challenges in policy design terms involved in directly linking existing emissions trading schemes, and the status of planned emissions trading schemes, in order to set the potential of establishing a policy framework for a global carbon market in a realistic frame. The paper begins by outlining what linking is and setting out the advantages and risks of linking schemes. The key criteria to consider in order to establish compatibility for linking are explored, and then a summary of existing or planned schemes is given to highlight some of the technical challenges involved in linking emissions trading schemes together. The paper goes on to describe how a linked scheme could be set up and then moves on to the political arena, looking more closely at the political benefits and risks of linking and then discussing whether or not linking emissions trading schemes is an element of, or an alternative to, a global climate policy.

Navigating the global carbon market

Energy Policy ◽  
2010 ◽  
Vol 38 (1) ◽  
pp. 277-287 ◽  
Author(s):  
Malte Schneider ◽  
Holger Hendrichs ◽  
Volker H. Hoffmann
Keyword(s):  
Carbon Market ◽  
Global Carbon ◽  
Global Carbon Market

Docking into a Global Carbon Market

2009 ◽  
pp. 385-408 ◽  
Author(s):  
Gernot Wagner ◽  
Nathaniel Keohane ◽  
Annie Petsonk ◽  
James S. Wang
Keyword(s):  
Carbon Market ◽  
Global Carbon ◽  
Global Carbon Market

scholarly journals Regional Cooperation on Carbon Markets in East Asia

2018 ◽  
Vol 35 (2) ◽  
pp. 153-179 ◽  
Author(s):  
Jiajia Li ◽  
Junjie Zhang
Keyword(s):  
Regional Cooperation ◽  
Global Climate ◽  
Emission Trading ◽  
Cost Effective ◽  
Secondary Market ◽  
Carbon Markets ◽  
Design Elements ◽  
Republic Of China ◽  
The Republic ◽  
Reporting And Verification

The People's Republic of China, Japan, and the Republic of Korea have launched individual emission trading schemes to control greenhouse gas emissions cost-effectively. This paper reviews key carbon market design elements in the three countries in terms of emission allowances, covered sectors, allowance allocations, monitoring, reporting and verification, compliance and penalties, and offset markets. We assess the performances of the emission trading schemes among the three countries based on secondary-market allowance transactions. Considering heterogeneous climate policy designs in the region, we explore various approaches for the linkage of East Asian carbon markets. Cooperation on carbon markets is instrumental for regional and global climate governance. It could not only help achieve cost-effective emission reductions in the region, but also signal the commitment of the three countries to climate change mitigation.

scholarly journals Moving Steadily or Great Leap Forward? The Emerging Carbon Market in China

2013 ◽  
Vol 18 (2) ◽  
pp. 233 ◽  
Author(s):  
Ying Shen
Keyword(s):  
Carbon Emissions ◽  
Emissions Trading ◽  
Ghg Emissions ◽  
Policy Instrument ◽  
Carbon Market ◽  
Chinese Government ◽  
Carbon Markets ◽  
Emissions Trading Scheme ◽  
Trading Scheme ◽  
Environmental Policy Instrument

China has become a large greenhouse gas (‘GHG’) emissions source due to its rapid industrialisation and urbanisation. Given the heavy environmental footprint caused by China’s economic growth, the Chinese government has recognised the need to control carbon emissions and mitigate climate change. Indeed, China has made remarkable progress in reducing its energy consumption per unit of gross domestic product (‘GDP’). However, these improvements are mainly the result of the most readily available abatement options. Given that simple solutions have almost been exhausted, cost-effective market-based instruments such as carbon emissions trading and carbon markets have become the focus of the Chinese leadership’s attention and have begun to emerge and develop in China. At this stage the primary issue that must be considered by the Chinese government is how to implement an emissions trading scheme (‘ETS’) — whether to adopt such a new environmental policy instrument step by step in an evolutionary manner or whether to fully implement it instantly in a revolutionary way. This article considers the future direction of an emerging carbon market in China. It first provides a comprehensive and up-to-date review of current pilot ETS programs in China. Based on the review of these programs, China’s pilot ETS programs and the well-established European Union Emissions Trading Scheme (‘EU ETS’) are compared. The improvements made by, and the shortcomings of, these pilot programs (which could be considered by the Chinese government in choosing an appropriate development model of the ETS in the near future) are summarised. The article concludes by assessing the prospects of an ETS in China.

scholarly journals REDD credits in a global carbon market

2014 ◽  
Author(s):  
Arild Angelsen ◽  
Caroline Wang Gierløff ◽  
Angelica Mendoza Beltrán ◽  
Michel den Elzen
Keyword(s):  
Carbon Market ◽  
Global Carbon ◽  
Global Carbon Market

scholarly journals Demand in a Fragmented Global Carbon Market: Outlook and Policy Options

2013 ◽  
Author(s):  
Sampo Seppänen ◽  
◽  
Hanna-Mari Ahonen ◽  
Juha Ollikainen ◽  
Suvi Viljaranta ◽  
...  
Keyword(s):  
Carbon Market ◽  
Policy Options ◽  
Market Outlook ◽  
Global Carbon ◽  
Global Carbon Market
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