1. DUAN Maosheng China Carbon Market Center (CCMC), Tsinghua University
China’s National Emissions Trading System: Features, Progress and Prospects
DUAN Maosheng
China Carbon Market Center (CCMC), Tsinghua University

2. 1. Key Features of China’s National System
Unified rules for all regions for make a unified system
Flexibilities to extend coverage and reduce free allowances given to the provincial authorities to address regional disparities
Benchmarking approach the first choice for allocation
Real production-based allocation and regulation of indirect emissions to coordinate with other policies
Ex-post cap determined by bottom-up approach to adapt to the intensity-based national mitigation target at the initial stage
Shared responsibilities between authorities at the national and provincial levels
Comprehensive compliance rules

3. 2. Progress
Publication of the Development Plan of the National Carbon Emissions Trading System (Power Generation Sector) on 19 December 2017
Reporting and verification of historical emissions of enterprises in the 8 sectors as of 2013
Development of the registry, reporting and transaction systems
Further test/assessment of the proposed allocation approaches
Continued efforts on legislation, capacity building ……

4. 3. Challenges
Competition/coordination with other policies such as “double control” of both energy consumption amount and intensity, trading of right to use energy, power sector reform, renewable energy development policy, air pollution control policies, etc.
Coordination with other mitigation policies such as regional GDP carbon intensity reduction target
Co-existence of the national and regional systems, including possible transition for some sectors
Coordination efforts in system design and regional practice
Government reform undergoing
Vested interests and quickly missing coordination opportunities

5. Thanks duanmsh@tsinghua.edu.cn