The Inspiration of the International Carbon Market for the Development of Green Finance in China

Abstract

After introducing the Clean Development Mechanism in 2004, China combined foreign carbon market experience and actively carried out pilot carbon market construction in selected provinces and cities. In September 2020, President Xi Jinping announced Chinas dual carbon goal for the first time at the 75th United Nations General Assembly general debate. The goal is to strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Although seven regional carbon market pilots have been launched in the past three years and experience has been accumulated, Chinas experience in using market-based climate policies is still limited. Establishing a unified domestic carbon market and making it a major tool for Chinas emission reduction and response to climate change requires continuous learning and drawing on the successful experience of international carbon markets, especially lessons from failures. The international carbon market provides important inspiration for the development of green finance in China. By establishing a carbon market, China can achieve carbon pricing, promote the growth of green funding, strengthen financing uphold for low-carbon projects, and contribute to addressing climate change challenges and achieving sustainable development goals.