Coordinated carbon reduction mechanism and policy design to achieve carbon peak and neutrality goals in the Yangtze River Delta

Abstract

Carbon emissions reduction has become a major issue in global development. China has adopted various carbon reduction policies since committing to the double carbon target and now requires an effective and systematic collaborative carbon reduction mechanism. The Yangtze River Delta, a developed region in China, is a suitable pilot city for developing such a mechanism. In this study, carbon emissions from the Yangtze River Delta region were analyzed and the pressures to and potential of carbon emissions reduction were summarized. By dialectically analyzing the characteristics of each emissions reduction policy, we proposed the implementation of carbon tax policies. We designed a set of emissions reduction policies suitable for the current Yangtze River Delta region with other mechanisms that promote energy transformation and industrial upgrades and provided ideas for implementing carbon emissions reduction policies nationwide. The design of the carbon tax policy emphasizes collaboration with the carbon trading policy and promotes energy structure transformation and process upgrades to the entire industry. The carbon tax also emphasizes that tax revenue control should have a guiding role. The government should encourage enterprises to actively improve green technology and adjust the energy structure through the rational use of carbon tax revenues.