China’s climate governance for carbon neutrality: regulatory gaps and the ways forward

Abstract

The realisation of global carbon neutrality is crucial for combating climate change. As the largest emitter, China declared to achieve carbon neutrality by 2060. However, substantial changes in the energy structure are far from being achieved. Using time series data from 2001 to 2019 and the ARDL-ECM method, this paper explored the effectiveness of climate policies in controlling China’s carbon emissions. The results show that economic and technical factors such as economic growth and energy structure are the determinants of carbon emissions. A green paradox is shown since increasing climate policy density does not significantly reduce carbon emissions. The main regulatory gaps in China’s climate governance include weaknesses in the rule of law, lack of accountability, and insufficient arrangements for equitable energy transitions. A binding legal system is necessary to realise absolute reduction and secure carbon neutrality, especially one including specific climate change legislation, binding reduction targets, and combining energy justice with regulatory efficiency.