The establishment of carbon trading market in People’s Republic of China: A legislation and policy perspective

Abstract

Purpose

This study aims to propose a set of institutional frameworks, as well as practical polices and steps, with a view to facilitating the establishment of a unified carbon trading market in China.

Design/methodology/approach

Based on existing empirical studies and reviews of the socioeconomic contexts, this study followed a qualitative approach consisting of secondary data collection and analysis, semi-structured interviews to collect primary data and comparative analysis.

Findings

The establishment of a national carbon trading market in China is a systemic and complex process which requires coordination among various concerned government agencies and supporting mechanisms. Currently, the development of a unified national carbon market has been impeded by the lack of coordination among local pilot programs, and there is no specific law passed by the People’s Congress or by its Standing Committee to regulate the emerging carbon trading market. It is of vital importance for China, in terms of both practical and strategic aspects, to take a gradualist approach in establishing laws and institutions to guide and support the development of its emerging carbon market.

Research limitations/implications

This present study forms a part of a regional research project aiming to identify sound policy approaches for the establishment of a carbon trading market in China. Due to scope reasons, it focuses only on policy analysis and recommendations.

Originality/value

China’s emerging national carbon trading market has attracted much research attention. However, little has been done from the perspectives of legislations and policies.

Citation

Nai, P., Luo, Y. and Yang, G. (2017), "The establishment of carbon trading market in People’s Republic of China: A legislation and policy perspective", International Journal of Climate Change Strategies and Management, Vol. 9 No. 2, pp. 138-150. https://doi.org/10.1108/IJCCSM-02-2016-0020