Reference of European Carbon Market to Chinas Carbon Market under the Unified National Market

Abstract

Under the goal of global net zero emissions, China has established a carbon market to limit and allocate carbon emissions. Based on the establishment of China's national unified market and the official operation of China's carbon market, this paper compares China's carbon market with Europe's carbon market. Firstly, this paper first reviews the relevant papers, mainly including the summary of the development experience of the four stages of the European carbon market, the reference significance of the European carbon market for China's carbon market, and the scale advantage in the carbon market. Then, the paper compares and analyzes the European carbon market and China's carbon market from three aspects: regional development imbalance, financial attributes and limitations of the carbon market. It also analyzes the role that China's national unified market can play in the development of carbon market. Finally, this paper puts forward suggestions for China to use the national unified market to develop the carbon market from two aspects: reducing regional development imbalance and developing carbon financial instruments and financial products.