Published: August 5th, 2021,
Last updated: August 5th, 2021
The world’s largest emissions trading scheme has been launched. And it’s happening in China. And just like the EU, the Chinese leadership intends to wield it as an instrument in the fight against climate change to significantly curb the amount of CO2 emissions. Although both the EU and China speak of „emissions trading,“ both systems differ considerably. Chinese emissions trading is much less ambitious; a cap on thermal power generation, for example, is completely absent. Even before the official introduction of emissions trading in China, it was clear that their system would have little impact on the amount of CO2 emitted in the People’s Republic in the first few years. Amelie Richter and Nico Becker analyze how both systems could become compatible in the near future.