China’s National Emissions Trading System

Global Economic Policy and Institutions
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TABLE OF CONTENTS
LIST OF FIGURES AND TABLES
LIST OF ABBREVIATIONS
FOREWORD
EXECUTIVE SUMMARY
1. INTRODUCTION 1
2. CARBON MARKETS UNDER THE PARIS CLIMATE REGIME 2
2.1 Intended Nationally Determined Contributions: Moving Towards Bottom-up
Global Climate Action 2
2.2 The Role of Carbon Pricing in the New Climate Governance Framework 3
3. THE GROWTH OF CARBON MARKETS 7
3.1 Carbon Market Developments around the World 7
3.2 Linking Carbon Markets 8
3.3 A Club of Carbon Markets: A Post-Paris Reality? 10
4. THE CHINESE ETS: FROM SUB-NATIONAL PILOTS TO A NATIONAL ETS 12
4.1 The Chinese Pilots’ Coverage 12
4.2 Allocation, Carbon Leakage, and Cost Containment Provisions
under the Pilots 14
4.3 Monitoring, Reporting, and Verification in China’s ETSs 14
4.4 Compliance and Penalties under China’s Pilots 15
4.5 The Pilots’ Offset Measures 15
4.6 Carbon Prices and Trading in the Pilots 16
4.7 The National ETS: Background Information 17
4.8 Challenges for China’s National ETS 18
5. IMPLICATIONS OF CHINA’S ETS FOR CARBON
MARKET DEVELOPMENTS AND COOPERATION 20
5.1 Implications for Existing Markets 20
5.2 Implications for Countries without Carbon Markets 21
5.3 Implications for Carbon Market Cooperation
and Implementation of the Paris Agreement 22
6. CONCLUSION AND POLICY RECOMMENDATIONS 24
ENDNOTES 26
REFERENCES 30
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