Publications

China Green Finance Task Force Report: Emissions Trading

Carbon and pollution trading markets are important financial infrastructures for the promotion of emission abatement at lower costs and with higher efficiency. This paper proposes the following recommendations on the development of carbon and pollution trading markets, which is underway in China:

• Improve relevant institutional design and effectiveness of the trading mechanism
• Establish both national and regional systems and adopt cross-regional emissions trading in key water basins and key regions of air pollution
• Create a pollution abatement fund as an initiator to stimulate private investments on environmental protection
• Establish a regular evaluation and adjustment mechanism for compatible emissions cap and environmental capacity
• Establish a management platform of national emission trading and enhance information disclosure
• Improve the system of emissions law enforcement and monitoring and increase the cost of violations

[NB: This paper is one chapter of the broader report “Establishing China’s Green Financial System” developed by the China Green Finance Task Force, which was convened by the Research Bureau of the People’s Bank of China together with the UNEP Inquiry]

NB: Emissions trading is complementary to, but outside of the scope of the UNEP Inquiry.