Interactions and coordination between carbon emissions trading and other direct carbon mitigation policies in China

Abstract

China has decided to rely on a variety of policy approaches to achieve its ambitious greenhouse gas mitigation targets, with carbon emissions trading as the latest policy alongside many existing policies, such as GDP CO2 intensity reduction, energy efficiency and renewable energy policies. This article is intended to elucidate from a qualitative perspective the interactions between emissions trading and other relevant policies in China through the analysis of their elements, policy processes, characteristics, dimensions, performances and impacts. Intensive interviews were conducted with more than 50 major stakeholders involved in the policy formulation and implementation process, including policy makers at different levels, experts, industries and verifiers. The authors themselves were also deeply involved in the policy formulation and implementation process. The analysis shows that coordination between emissions trading and other policies, which is urgently needed from many aspects, is lacking in most aspects in practice for many reasons, among which institutional vested interests are possibly the most important. It is proposed that coordination should be conducted at both political and technical levels to achieve the full benefits of emissions trading, and starting from technical aspects may be a practical approach.