Key Issues of China's Carbon Pricing Mechanism Construction

Abstract

[Introduction] This paper aims to deeply analyze and improve China's carbon pricing mechanism to more effectively promote the social transition to green and low-carbon, and at the same time enhance China's leadership and initiative in the process of global carbon peaking and carbon neutrality. [Method] By comprehensively sorting out the current situation and future trends of the global carbon pricing mechanism, this article deeply analyzed the shortcomings of China's existing carbon pricing mechanism, such as insufficient correlation with the overall climate policy goals, unclear nature of property rights in the carbon market, and inactive market entities. This paper further discussed the potential impact of rising carbon price on China's emission reduction effect and energy supply guarantee. [Result] Based on China's national conditions, this paper gives the strategic direction and corresponding measures to construct China's carbon pricing mechanism by using carbon market carbon quota, carbon tax, coordination between carbon market and carbon tax, and carbon finance. [Conclusion] On the basis of clarifying the development ideas of China's carbon pricing mechanism, it provides a countermeasure reference for China to win more voice in the international carbon pricing mechanism, such as strategies for synergizing the domestic electricity certificate and carbon markets, improving the "integrity" of China's green certificates, engaging in the promotion of mutual recognition in international carbon markets, and collaborating to establish coordinated carbon pricing mechanisms among nations.

Keywords

• carbon peaking and carbon neutrality
• carbon pricing
• carbon emission trading
• carbon quote allocation
• carbon tax