{"id":3916,"date":"2022-04-18T17:45:23","date_gmt":"2022-04-18T09:45:23","guid":{"rendered":"https:\/\/igdptest.symbol365.com\/en\/?post_type=insight&#038;p=3916"},"modified":"2026-08-18T17:52:52","modified_gmt":"2026-08-18T09:52:52","slug":"improving-the-national-carbon-emissions-trading-scheme-to-support-chinas-climate-goals","status":"publish","type":"insight","link":"https:\/\/igdptest.symbol365.com\/en\/insights\/improving-the-national-carbon-emissions-trading-scheme-to-support-chinas-climate-goals\/","title":{"rendered":"Improving the National Carbon Emissions Trading Scheme to Support China&#8217;s Climate Goals"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3916\" class=\"elementor elementor-3916\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-594917d elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"594917d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9e527b8\" data-id=\"9e527b8\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4efe495 elementor-widget elementor-widget-igdp_insight_detail_hero\" data-id=\"4efe495\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"igdp_insight_detail_hero.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"row-report1\">\n\t\t<div class=\"wp\">\n\t\t\t\t<div class=\"cur cur1\">\n\t\t<a href=\"\/en\/\">Home<\/a>\n\t\t<i>\/<\/i>\n\t\t<a href=\"\/en\/insights\/\">Insights<\/a>\n\t\t<i>\/<\/i>\n\t\t<span>Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals<\/span>\n\t<\/div>\n\t\t\t\t<div class=\"m-report1 wow fadeInUp\">\n\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t<div class=\"inner\">\n\t\t\t\t\t\t<div class=\"tit\">Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"line\"><\/div>\n\t\t\t\t\t\t<div class=\"desc\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon3.svg);\">Chinese<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon4.svg);\">APR 2022<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon5.svg);\">Report<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon6.svg);\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Green Economics<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span\">Power<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">Summary:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">This report analyzes the design and early performance of China&#039;s national carbon emissions trading scheme (ETS), which launched in 2021 covering the power sector, and offers policy recommendations to strengthen it as a central pillar of China&#039;s decarbonization strategy. It recommends introducing a price collar (price floor and ceiling) to stabilize carbon prices and manage economic risks, expanding coverage to include cement, aluminum, and steel sectors, transitioning from an intensity-based to an absolute emissions cap, and gradually introducing allowance auctions through a consignment mechanism to improve price signals and market efficiency. It also emphasizes the importance of robust monitoring, reporting, and verification (MRV) systems, including leveraging existing air pollutant data to verify fuel combustion reports, increasing penalties for data fraud, and improving transparency. Beyond ETS design, the report highlights the need for policy coherence\u2014particularly completing power sector reform to enable economic dispatch\u2014and underscores the alignment between a stronger carbon market and China&#039;s broader economic strategy of fostering domestic innovation and competitiveness in clean technologies.<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">Suggested citation:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">Busch Chris, Hu Min, Chen Meian. (2022).\u00a0Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals. Energy Innovation, Institute of Finance and Sustainability, and Institute for Global Decarbonization Progress (iGDP).<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc2\">\n\t\t\t\t\t\t\t\t<div class=\"span2\">License:<\/div>\n\t\t\t\t\t\t\t\t<div class=\"span3\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\" class=\"link\">Creative Commons Attribution 4.0 International License (CC BY 4.0)<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"igdp-report-download-buttons\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"\/en\/wp-content\/uploads\/2022-04-IGDP-Report-ZH-Improving-the-National-Carbon-Emissions-Trading-Scheme-to-Support-Chinas-Climate-Goals.pdf\" class=\"g-btnr1\"><span style=\"background-image: url(\/en\/wp-content\/themes\/MyBasicTheme\/images\/igdp\/product\/icon7.svg);\">download zh<\/span><\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t<div class=\"pic\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"\/en\/wp-content\/uploads\/Screenshot-2026-08-18-at-5.46.58-PM.jpg\" alt=\"Improving the National Carbon Emissions Trading Scheme to Support China&#039;s Climate Goals\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c051791 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"c051791\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a15c30f\" data-id=\"a15c30f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bb5cb98 elementor-widget elementor-widget-igdp_insight_detail_related\" data-id=\"bb5cb98\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"igdp_insight_detail_related.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"row-report4\" id=\"page09\">\n\t\t<div class=\"wp\">\n\t\t\t<div class=\"g-titr1 wow fadeInUp\">Related<\/div>\n\t\t\t<ul class=\"ul-report4 wow fadeInUp\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/eu-carbon-border-adjustment-mechanism-cbam-progress-and-prospects\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">EU Carbon Border Adjustment Mechanism (CBAM): Progress and Prospects<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This report analyzes the European Union&#039;s Carbon Border Adjustment Mechanism (CBAM) as it transitions from its preparatory phase to full implementation, focusing on three critical policy areas with direct implications for Chinese exporters: the recognition of carbon prices paid in producing countries, the potential conditional acceptance of international carbon credits, and the technical alignment between CBAM and the EU ETS free allowance benchmarks. The methodology combines systematic legal review of the CBAM Regulation and its implementing acts with practical policy assessment, drawing on official EU legislative documents, technical studies from the Joint Research Centre (JRC) and the European University Institute (EUI), and expert reports from adelphi and the Climate Club. The research examines the regulatory texts, identifies remaining uncertainties, and derives forward-looking policy recommendations for Chinese authorities and enterprises.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Report<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">APR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"1086\" src=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-768x1086.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-768x1086.jpg 768w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-212x300.jpg 212w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-724x1024.jpg 724w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM-1086x1536.jpg 1086w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-9.15.09-PM.jpg 1124w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/quantifying-the-long-term-impact-of-the-carbon-border-adjustment-mechanism-on-the-chinese-steel-industry\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Quantifying the Long-term Impact of the Carbon Border Adjustment Mechanism on the Chinese Steel Industry<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This paper analyzes the long-term impact of the European Union&#039;s Carbon Border Adjustment Mechanism (CBAM) on China&#039;s steel industry, with a focus on quantifying the resulting cost burden and identifying the key drivers and mitigating factors. The methodology employs a dynamic, process-level scenario-based model (CBAM-CST) that links three steel production routes (BF-BOF, DRI-EAF, and Scrap-EAF) with their emission intensities, energy transition pathways, carbon pricing systems (EU ETS and China&#039;s national carbon market), and trade flows through 2050. The model integrates three sub-modules\u2014inflation and exchange rates, CBAM certificate cost calculation, and China&#039;s steel low-carbon transformation\u2014to simulate CBAM obligations across multiple scenarios (BAU, DCS, and NES), with sensitivity analyses examining the effects of EU ETS carbon prices, domestic carbon market inclusion, electricity decarbonization, and hydrogen utilization on total certificate costs.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Academic Journal Article<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">MAR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img decoding=\"async\" width=\"768\" height=\"1005\" src=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-768x1005.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-768x1005.jpg 768w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-229x300.jpg 229w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-783x1024.jpg 783w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM-1174x1536.jpg 1174w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-6.38.25-PM.jpg 1220w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/2025-global-coal-phaseout-progress-tracking-report\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">2025 Global Coal Phaseout Progress Tracking Report<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This report tracks global coal phaseout progress in 2025, synthesizing key developments across fossil fuel transitions, research findings, just transition policies, green finance, low-carbon industries, and climate governance. It compiles and analyzes information from over 70 news articles, research studies, and policy documents curated through the &quot;Farewell Coal&quot; project, presenting country-specific case studies (including Vietnam, the EU, Finland, Ireland, the US, the Philippines, and Poland), regional analyses (OECD countries, Southeast Asia, South Asia, and Africa), and thematic assessments of renewable energy growth, carbon pricing, and the political economy of coal exit. The report provides a comprehensive overview of the structural trends shaping the global shift away from coal.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Report<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">MAR 2026<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img decoding=\"async\" width=\"768\" height=\"1092\" src=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-11.12.37-PM-768x1092.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-11.12.37-PM-768x1092.jpg 768w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-11.12.37-PM-211x300.jpg 211w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-11.12.37-PM-720x1024.jpg 720w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-11.12.37-PM-1080x1536.jpg 1080w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-11-at-11.12.37-PM.jpg 1128w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/chinas-renewable-ambition-provincial-pathways-toward-a-renewable-powerhouse\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">China&#8217;s Renewable Ambition: Provincial Pathways Toward a Renewable Powerhouse<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This report analyzes provincial-level pathways for achieving China&#039;s national target of 3.6 TW of installed solar and wind capacity by 2035. It integrates EPS 30-province modeling results, provincial renewable target tracking, and policy review to identify key regional drivers. It projects solar and wind capacity additions under a Dual Carbon Scenario, compares these projections against existing provincial targets (many of which have already been met years ahead of schedule), and analyzes electricity demand growth patterns to identify supply-demand imbalances. It finds that ten provinces\u2014led by Inner Mongolia, Shandong, Jiangsu, Henan, and Guangdong\u2014will account for over half of capacity additions, with solar PV dominating growth. The analysis highlights the critical enabling roles of transmission infrastructure and electricity market reform in sustaining rapid renewable expansion.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Report Summary<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">NOV 2025<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"1084\" src=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.28.11-PM-768x1084.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.28.11-PM-768x1084.jpg 768w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.28.11-PM-212x300.jpg 212w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.28.11-PM-725x1024.jpg 725w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.28.11-PM-1088x1536.jpg 1088w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.28.11-PM.jpg 1126w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/increasing-renewable-energy-installed-capacity-targets-in-30-provinces-in-china-in-the-15th-five-year-plan-period\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">Increasing Renewable Energy Installed Capacity Targets in 30 Provinces in China in the 15th Five-Year Plan Period<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This working paper analyzes the potential for provinces to raise their renewable energy capacity targets for 2030 during China&#039;s 15th Five-Year Plan period. It reviews provincial progress toward existing 2025 and 2030 solar and wind targets, identifying provinces that have already met or exceeded their goals years ahead of schedule. Using the 30-province EPS base model, it projects electricity demand growth and renewable capacity additions under a Dual Carbon Scenario, compares these projections against existing provincial targets, and identifies provinces with significant upside potential. It also discusses the critical enabling conditions\u2014transmission infrastructure, electricity market reform, and flexibility resources\u2014needed to support continued renewable expansion.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Working Paper<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">SEP 2025<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"1093\" src=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.50.37-PM-768x1093.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.50.37-PM-768x1093.jpg 768w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.50.37-PM-211x300.jpg 211w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.50.37-PM-720x1024.jpg 720w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.50.37-PM-1079x1536.jpg 1079w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.50.37-PM.jpg 1116w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t<a href=\"\/en\/insights\/a-model-for-analyzing-the-interaction-between-the-european-cbam-and-the-chinese-steel-industry\/\" class=\"con\">\n\t\t\t\t\t\t\t<div class=\"txt\">\n\t\t\t\t\t\t\t\t<div class=\"tit\">A Model for Analyzing the Interaction between the European CBAM and the Chinese Steel Industry<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"desc\">This report presents the CBAM-CST model, a quantitative tool developed to analyze the long-term interaction between the EU Carbon Border Adjustment Mechanism and China&#039;s steel industry decarbonization. The model integrates three modules\u2014CBAM cost calculation, China&#039;s steel low-carbon transformation, and inflation\/exchange rates\u2014to simulate CBAM certificate costs across multiple scenarios through 2050. It identifies EU ETS carbon price and Chinese steel carbon intensity as the primary cost drivers, and examines how low-carbon technologies (DRI-EAF, scrap-EAF), electricity decarbonization, and hydrogen adoption can reduce the CBAM burden. The analysis also evaluates the potential offset from China&#039;s domestic carbon market and provides technical support for China-EU policy dialogue and enterprise strategy formulation.<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"span1\">Report<\/span>\n\t\t\t\t\t\t\t\t<span class=\"date\">JUN 2025<\/span>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"picbox\">\n\t\t\t\t\t\t\t\t<div class=\"pic\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"1094\" src=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM-768x1094.jpg\" class=\"attachment-medium_large size-medium_large wp-post-image\" alt=\"\" srcset=\"https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM-768x1094.jpg 768w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM-211x300.jpg 211w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM-719x1024.jpg 719w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM-1079x1536.jpg 1079w, https:\/\/igdptest.symbol365.com\/en\/wp-content\/uploads\/Screenshot-2026-08-12-at-9.52.17-PM.jpg 1118w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t<\/ul>\n\t\t<\/div>\n\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This report analyzes the design and early performance of China&#8217;s national carbon emissions trading scheme (ETS), which launched in 2021 covering the power sector, and offers policy recommendations to strengthen it as a central pillar of China&#8217;s decarbonization strategy. It recommends introducing a price collar (price floor and ceiling) to stabilize carbon prices and manage economic risks, expanding coverage to include cement, aluminum, and steel sectors, transitioning from an intensity-based to an absolute emissions cap, and gradually introducing allowance auctions through a consignment mechanism to improve price signals and market efficiency. It also emphasizes the importance of robust monitoring, reporting, and verification (MRV) systems, including leveraging existing air pollutant data to verify fuel combustion reports, increasing penalties for data fraud, and improving transparency. Beyond ETS design, the report highlights the need for policy coherence\u2014particularly completing power sector reform to enable economic dispatch\u2014and underscores the alignment between a stronger carbon market and China&#8217;s broader economic strategy of fostering domestic innovation and competitiveness in clean technologies.<\/p>\n","protected":false},"featured_media":3917,"template":"","meta":{"_acf_changed":false,"igdp_summary":"This report analyzes the design and early performance of China's national carbon emissions trading scheme (ETS), which launched in 2021 covering the power sector, and offers policy recommendations to strengthen it as a central pillar of China's decarbonization strategy. It recommends introducing a price collar (price floor and ceiling) to stabilize carbon prices and manage economic risks, expanding coverage to include cement, aluminum, and steel sectors, transitioning from an intensity-based to an absolute emissions cap, and gradually introducing allowance auctions through a consignment mechanism to improve price signals and market efficiency. It also emphasizes the importance of robust monitoring, reporting, and verification (MRV) systems, including leveraging existing air pollutant data to verify fuel combustion reports, increasing penalties for data fraud, and improving transparency. Beyond ETS design, the report highlights the need for policy coherence\u2014particularly completing power sector reform to enable economic dispatch\u2014and underscores the alignment between a stronger carbon market and China's broader economic strategy of fostering domestic innovation and competitiveness in clean technologies.","igdp_featured_media":3917,"igdp_download_file":1631,"igdp_external_url":"","igdp_key_info":"","igdp_related_insights":[]},"insight_type":[48],"insight_region":[45],"igdp_topic":[149,152],"class_list":["post-3916","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_type-report","insight_region-china-national","igdp_topic-green-economics","igdp_topic-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/insight\/3916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":9,"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/insight\/3916\/revisions"}],"predecessor-version":[{"id":3926,"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/insight\/3916\/revisions\/3926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/media\/3917"}],"wp:attachment":[{"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/media?parent=3916"}],"wp:term":[{"taxonomy":"insight_type","embeddable":true,"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/insight_type?post=3916"},{"taxonomy":"insight_region","embeddable":true,"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/insight_region?post=3916"},{"taxonomy":"igdp_topic","embeddable":true,"href":"https:\/\/igdptest.symbol365.com\/en\/wp-json\/wp\/v2\/igdp_topic?post=3916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}