China issues guideline to advance low-carbon transition, strengthen national carbon trading market

China has issued a new guideline to accelerate its green and low-carbon transition and advance the development of a national carbon trading market.

The guideline is jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.

It states that by 2027, the country's carbon trading market will encompass all major industrial sectors, and the national voluntary greenhouse gas emission reduction trading market will expand to include all key fields.

By 2030, China will have essentially established a national carbon trading market based on a cap-and-trade system with both free and paid allocations. This year will also see the completed construction of a national voluntary greenhouse gas emission reduction trading market that is credible, transparent, standardized, broadly participatory, and aligned with international standards.

By then, the country is expected to achieve notable emission reduction results, improve its regulatory framework, and establish a carbon pricing mechanism with reasonable price levels.

The guideline calls for expanding the coverage of the national carbon trading market, refining the carbon emission quota allocation system, and strengthening oversight of regional pilot carbon trading schemes.

It also urges the development of a national voluntary greenhouse gas emission reduction market through measures such as better coordination of carbon reduction resources, regulating voluntary reduction activities, and promoting the use of certified emission reductions.

The guideline calls for invigorating the carbon trading market by enriching trading products, expanding market participants, and strengthening market supervision.

The guideline emphasizes strengthening the overall capacity of the carbon trading market, including improving carbon emission accounting and reporting as well as enhancing the information disclosure system.

It also stresses reinforcing policy and legal support and deepening international exchanges and cooperation.