Sino-German Cooperation
on Biodiversity, Climate and Environment
On behalf of International Climate Initiative (IKI)

Interactions Between Carbon Markets, Green Certificate Trading and Green Power Trading in China

With the announcement of its 2030/2060 emissions control targets, China’s climate policy has entered a new era. The carbon market is identified as one key policy tool to help reduce emissions, while the trading of green electricity/power certificates (REC) that promote renewable energy development, is of particular importance given the overlap in scope with the carbon market. In this context, the GIZ project “Sino-German Cooperation on ETS, Carbon Market Mechanisms and Industry-related N2O Mitigation” gave insights into the interactions between the carbon market, green power trading and REC trading in China, aiming to support the harmonization of carbon pricing signals, avoid double counting of emission (reductions), make the best use of market-based tools to achieve 2030/2060 targets and address potential international carbon tax.