IncollaborationwithBain&Company

Asia’sCarbonMarkets:StrategicImperativesforCorporations

INSIGHTREPORTSEPTEMBER2025

Images:Midjourney,GettyImages

Contents

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Foreword

ExecutivesummaryIntroduction

1ThecarbonmarketlandscapeinAsia

1.1Regionaloverview

1.2China–theworld’slargestcarbonmarket

1.3DevelopedAsianeconomies–pioneersinrobustcarbonpricing

1.4EmergingAsianeconomies–aimingforconnectedcarbonmarkets

1.5Regionalandinternationalcollaboration

2Strategicimperativesforcorporations

Imperative#1Overcomechallengesonthenet-zerojourney–byengagingwithcarbonmarkets

Imperative#2Capturenewbusinessgrowthopportunities–empoweredbycarbonmarkets

Imperative#3Activelybuildecosystems–tounlockthefullpotentialofcarbonmarkets

Conclusion

Appendix

AbbreviationsContributors

Endnotes

Disclaimer

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Thefindings,interpretationsand

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?2025WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformation

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Asia,sCarbonMarkets:StrategicImperativesforCorporations2

Asia,sCarbonMarkets:StrategicImperativesforCorporations3

September2025

Asia’sCarbonMarkets:

StrategicImperativesforCorporations

Foreword

SebastianBuckup

ManagingDirector,

WorldEconomicForum

Theglobalimperativetoaddressclimatechange

hasreachedacriticaljuncture,withtheParis

Agreement’sgoaloflimitingwarmingto1.5°C

demandingurgent,coordinatedaction.Central

tothiseffortisArticle6oftheParisAgreement,

whichhasemergedasatransformativeframework

forinternationalcooperation–enablingcross-

bordercarbontrading,harmonizingstandardsand

mobilizingglobalcapitaltoscaleupclimatesolutions.

Inthiscontext,carbonmarketshavebecome

indispensabletools,aligningenvironmentalambitionwitheconomicpragmatismtoacceleratethe

transitiontonetzero.AccordingtotheInternationalMonetaryFund(IMF),countriesacrosstheAsia-

Pacificregionfaceaclimatefinancingshortfallofatleast$800billion.Asinnovativeinstruments,carbonmarketsserveascriticalmechanismsformobilizingresourcesandreducingcosts,grantingcountries

andcompaniestheflexibilitytosmooththeirlow-carbontransitions.Asia,withmorethan50%ofglobalemissionsand55%ofGDP,standsattheforefrontofthistransition.

Againstthisbackdrop,theWorldEconomicForumincollaborationwithBain&Companyoffersthis

insightreport,whichpresentsacomprehensive

reviewoftheAsiancarbonmarket.Itdecodestheregion’spioneeringinnovations,dissectscritical

marketdynamicsanddistillshard-wonlessons.

DominikUtama

PartnerandAPAC

PracticeLead,SustainabilityandResponsibility,

Bain&Company

ByspotlightingAsia’suniquecarbonmarket

practices,weaimnotonlytoempowertheregion’sdecarbonizationjourneybutalsotoinspireglobalclimateaction,offeringablueprintfornations

worldwide.

Theevolvinglandscapeofcarbonmarketsin

Asiaforcescorporationstotaketheinitiative

amidchangestotacklechallengesandcapture

opportunities.Wemovebeyondgeneric

decarbonizationstrategyanalysis,weavingtogethermarketevolution,coreparticipantsandthe

broaderecosystemofstakeholders.Byanchoringcorporatethinkinginthisinterconnectedweb,

werevealhowbusinessescannavigatecarbon

marketcomplexities,notjustasparticipantsbutascatalystsforsystemicchange.

Aswemovethrough2025andtowardsever-

escalatingclimatecrisis,theurgencyofreaching

peakemissionsandcarbonneutralityhasnever

beenmoreacute.Thisreportfuelsthatmomentum.ItcallsforAsiatoleverageitscarbonmarket

innovations,forcorporationstoembracestrategicclimateleadershipandforglobalstakeholderstouniteinharnessingmarketmechanismstodriveirreversible,transformativechange.Together,letusseizetheopportunitytomovefromambition

toimpact,exploringhoweconomicprogressandclimatestewardshipcanbealigned.

Asia,sCarbonMarkets:StrategicImperativesforCorporations4

Executivesummary

Asia’scarbonmarketsarebecoming

increasinglyintegrated,offeringbusinessestheopportunitytorevampdecarbonizationplansandsecureacompetitiveedgeinthelow-carbontransition.

CarbonmarketsacrossAsiahaveenteredapivotalstageofevolutionandstructuraltransformation.

Corporationsshouldactnowandharness

thepowerofcarbonmarketstoadvancetheirdecarbonizationjourneys.

TheAsiancarbonmarketiscrucialinachievingglobalnet-zerogoals.

Theregionaccountsformorethan50%of

globalemissions1and55%ofglobalGDP,2yet

itscarbonmarketscurrentlycoveronly28%of

regionalemissions.3Ascriticalenablers,carbon

marketsplayakeyroleinmobilizingresources

andreducingcosts.UnliketheEuropeanUnion’s

mature,unifiedcarbonmarket,Asiancarbon

marketsarecharacterizedbyrapidscaling-up,

diversedevelopmentstagesandstrongpotentialforregionalsynergy.

Asiahostsquiteadvancedcarbonmarkets(e.g.

Japan,SouthKorea,Singapore)andisdevelopingnascentsystems(e.g.India,SouthEastAsia).

China,whichhoststheworld’slargestcarbon

marketandthebiggestmandatorynational

emissionstradingsystem(ETS),hasrelaunched

itsvoluntarycarbonmarket,ChineseCertified

EmissionsReduction(CCER).Thisreport’s

projectionssuggestthatChina’sETScouldreachRMB400-600billion($56-84billion)inmarket

sizeby2030,drivenby2billiontonnesofcarbontradedatRMB200-300($28-42)pertonne.4Suchdevelopmentsserveasmodelsforotheremergingeconomiesintheregion.

Asia,sCarbonMarkets:StrategicImperativesforCorporations5

InterconnectivityamongAsiancarbonmarketsofferssubstantialpotentialtofacilitatecross-bordercooperationandregionalintegration.

Integrationcouldbeachievedthroughestablishingunifiedrules,enablingtradinginterconnections,

sharingdata,providingmutualassistancein

capacitybuildingandensuringinteroperability

withinternationalstandards.Initiativessuchas

theASEANCommonCarbonFramework(ACCF)andJapan’sJointCreditingMechanism(JCM)arepioneeringintheiralignmentofrules,datasharingandcapacitybuilding.Suchcollaborationcould

enhancetheeffectivenessofregionalcarbon

marketsanddrivecollectiveprogresstowardslow-carbondevelopment.

Forbusinesses,carbonmarketsarestrategic

toolsthatcanacceleratetheirlow-carbon

transformationandboosttheircompetitiveness.

Corporationscanintegratecarbonmarketsinto

decarbonizationstrategiestooptimizeemissionsreductionpathways,aligningwithAsia’sevolvingregulatoryframeworks.Thisincludesoperationalemissionsreductionviastructuredroadmaps,

valuechaindecarbonizationthroughsupplier

collaboration,andstrategiccarboncreditportfoliodesigntobalanceshort-andlong-termobjectives.

Thegrowthofcarbonmarketsalsofuelsdemandforlow-carbontechnologiesandservices

(includingcarbonremovals),unlockingsignificantcommercialopportunitiesfornewbusinessgrowthopportunities.

Engaginginecosystemcollaborationandaligningwithregionalpolicydynamicsfurtherenables

corporationstoenhanceefficiency,manage

complianceandstrengthentheirpositioninAsia’slow-carbontransition.

Carbonmarketsencourageinnovationinlow-carbontechnologiesandservices.

Carbonmarketsfosteradvancementsinrenewableenergyprojects(e.g.grid-connectedsolarthermalpower,offshorewind),forestrycarbonsinks(e.g.

afforestation,mangroverestoration)andindustrialenergyefficiencyimprovements(e.g.energy-savinginhighwaytunnellightingsystems).

Digitaltechnologiessuchasblockchainand

privacycomputingareincreasinglyappliedtoenhancetheauthenticityandsecurityofcarbondatamanagement,supportingmoreefficient

measurement,reportingandverification(MRV)systems.

Innovationsalsoextendtomarketmechanismsandmethodologies,suchasdiversifiedcarbon

creditportfoliosbalancingnature-basedsolutions(NbS)andtechnology-basedsolutions(TbS).

Theseinnovationscreatenewgrowthavenuesandpositioncorporationsaskeycontributorstothe

low-carbonecosystem.

Toharnessthefullpotentialofcarbonmarkets,itisessentialtocreateanefficientand

transparentmarketecosystem.

Policy-makersshouldenhancedomestic

frameworksbyclarifyingrulesandbuildingrobustdatainfrastructurefortransparency.Theycan

activateliquiditybyexpandingmarketcoveragetomoresectors,engaginginmultilateralcooperationtoattractinternationaldemandandsupporting

high-qualitycarboncreditprojects.Expanding

carbonfinancialproductswillboostvitality,whileprioritizinginternationaldialogueformutual

recognitionofstandardspavesthewayforglobalinterconnectivity.

Corporationsshouldparticipateinpolicy

developmenttoalignruleswithindustryneedsandcollaboratewithstakeholdersonsector-specific

methodologicalstandards,enhancingcarbon

accountingcredibility.Partneringwithfinancial

institutionsandserviceproviderscaninnovate

carbonassetmodels,broadeningrevenuestreamsandinjectingliquidity.

Collectivecapacitybuildingthroughtrainingand

technologysharingwillalsoelevatemarketmaturity.Collaborativemechanismsamongstakeholderscanfurtherenhancetheeffectivenessofcarbonmarketsandmaximizetheirpotentialfordrivingsustainableeconomicgrowth.

Asia,sCarbonMarkets:StrategicImperativesforCorporations6

Introduction

Thisreportexaminestheevolution

ofAsiancarbonmarketsinboth

establishedandemergingeconomies,anddiscussesthestrategicimplicationsandopportunitiesforcorporations.

Thesemarketsincentivizeinnovationandadoptionofgreentransitionsthroughcarbonpricingand

trading.RecentadvancementsinArticle6of

theParisAgreement,whichestablishesrulesfor

countriestovoluntarilycollaborateonemissions

reductions,bolsterinternationalcooperation,furtheramplifyingtheglobalimpactofcarbonmarkets.

Carbonmarketsprovideastructuredplatform

fortradingcarbonallowancesandcreditsfor

market.Figure1outlinesthedifferenttypesof

carbonpricinginstruments,includingcarbon

markets.Carbonmarketsarecriticalforglobal

decarbonization,offeringamarket-based

mechanismtoreducegreenhousegas(GHG)

emissionswhilepromotingeconomicefficiencyandenhancingbusinesscompetitiveness.

Emissionstradingscheme(ETS)

Voluntarycarbonmarket

Operatesonacap-and-tradeprinciple

—AcapissetontotalGHG

emissions,withallowancesissuedequaltothecap.

—EntitiesmustholdoneallowancepertonneofGHGemittedbutcantradeallowancesinthemarket.

—Carbonpriceemergesfromsupply(allowanceissued)anddemand

(actualemissions).

RepresentativeAsiancountries

Entitiescoveredarerequiredto

paya?xedpricepertonneofcarbonemitted

—UnlikeETS,totalemissionsarenotpre-de?ned.

—CanserveasaninterimpolicytobuildcarbonpricinginfrastructurebeforetransitioningtoanETS.

Coversoffsettransactionsnot

intendedforregulatorycompliance

—Includesoffsetsboughttoresellorretireforenvironmentalclaimssuchascarbon-neutral.

—Drivenbybothpurelyvoluntary

buyersandpre-compliancebuyersanticipatingfutureregulatory

obligations.

RepresentativeAsiancountries

RepresentativeAsiancountries

SingaporeJapanThailandMalaysia

Predictablecarboncost

Easytoenforceintotaxsystem

ChinaIndiaJapanIndonesiaKorea

Cappedemissionsoffercertaintyaboutexactemissionsreduction

SingaporeJapanKoreaChinaIndonesia

Supportsinnovativedevelopment&capital?ows

Facilitatesglobal?nancingfornewcarbonprojects

FIGURE1Existingcarbonpricingmechanisms

Carbontax

Voluntary

Compliance

Source:UnitedNationsFrameworkConventiononClimateChange.5

Asia,sCarbonMarkets:StrategicImperativesforCorporations7

Globally,carbonmarketscover

ofGHGemissionsandjurisdictionsrepresenting58%ofglobalGDP

havecertaincarbonmarketsinplace.

TheAsiancarbonmarketisofuniquesignificance

Globally,carbonmarketscover23%ofGHG

emissionsandjurisdictionsrepresenting58%of

globalGDPhavecertaincarbonmarketsinplace,6withdevelopedeconomiesprimarilyleading.Asia,accountingformorethan50%ofglobalemissions7and55%ofGDP,8hascarbonmarketscovering

approximately28%ofregionalemissions.9

Asia’scarbonmarketsaremulti-layeredand

diverse.Theregionhostsquiteadvancedcarbon

markets(e.g.Japan,SouthKorea,Singapore)andisdevelopingnascentsystems(e.g.India,South

EastAsia),whileChinarepresentsthelargest

carbonmarketintheworldandisstrategically

expanding.Whetheradvancedordeveloping,eachcountryisinnovatingitsowninstitutionalframework.Asiancarbonmarketsareactivelyexploringvariousmodelsandschemes,includinghigh-potential

voluntarycarbonmarketsandinterconnectivity

mechanismsthatarebothregional(e.g.ASEAN’s

CommonCarbonFramework)andglobal.This

focusedevolutionisacceleratedbypoliciessuchastheCarbonBorderAdjustmentMechanism(CBAM)oftheEuropeanUnion(EU)andhaspositioned

theregionasacriticalcontributortoglobalclimatesolutions,offeringinnovativemodelsforother

economiesworldwide.

TheevolvingAsiancarbon

markethasstrategicimplicationsforcorporations

As2030approaches,Asiancarbonmarketswill

needtoundergoatransformativeintegrationof

economicandenvironmentalpriorities,creating

bothchallengesandopportunitiesforcompanies.Corporationsshouldadoptanewcarbon

market-informedstrategytothriveinthisevolvinglandscape,ascarbonpricingwillincreasinglyaffectoperationalandproductcosts.

Moreover,evolvingcarbonmarketandtechnologicaladvancementswillacceleratenext-generation

solutions,suchaslow-emissionfuelsandcarbon

capture,utilizationandstorage(CCUS),creating

newprofitpools.Tosucceed,corporationsshouldhelptofosterarobustecosystembyadvocatingforeffectivepoliciesandenhancingmarketliquiditytoleadinAsia’slow-carbontransition.

Aboutthisinsightreport

Thisinsightreportdeliversastrategicanalysis

ofselectedAsiancarbonmarkets,presenting

actionableinsightsforcorporations,financial

institutionsandpolicy-makers.AsAsiancarbon

marketsevolve,theirinterconnectionemergesasasystemicendeavourrequiringcollaborationacrossthesethreesetsofstakeholders.

Thereportcomprisestwomainchapters:

–Chapter1examinestheevolutionofAsiancarbonmarkets,withanin-depthfocus

onChina’ssystemanddevelopmentsin

establishedmarkets(Japan,SouthKorea,Singapore),aswellasinemergingmarkets(India,SouthEastAsia).Ithighlightsthe

importanceofregionalandinternationalcollaborationinscaling-upthesemarkets.

–Chapter2discussesstrategicimplicationsforcorporations,detailinghowbusinessescan

integratecarbonmarketstrategiestomanagerisks,seizeopportunitiesanddrivesustainablegrowthamidAsia’slow-carbontransition,

supportedbycasestudiesfromoutstandingAsiancorporations.

Byconnectingpolicy,marketdynamicsand

businessstrategy,thisreportequipscorporate

leadersandfinancialinstitutionstoaligntheir

strategieswiththetransformativepotentialof

Asiancarbonmarketsandremaincompetitive

inalow-carbonglobaleconomy.Italsooffersa

freshperspectiveforpolicy-makers,aidingthemindesigningpoliciesthatcanfostermarketgrowthmoreeffectivelywhilealigningwithbroaderclimateandeconomicobjectives.

ThecarbonmarketlandscapeinAsia

Carbonmarketscouldcutthecostofimplementingnationallydetermined

contributionsbymorethanhalf–savingupto$250billionby2030.

27countriesintheAsia-Pacificregionaccountfor

ofcurrentglobalcoalgenerationcapacity,

withongoingeconomicgrowthneedsacrosstheregion.

Asiacontributesmorethanhalfoftheworld’s

carbonemissions.10Theregionispivotaltoglobalclimateactionandisadvancinginitsglobal

greentransitiontowardsmeetingitslong-term

net-zeroambitions.Itisstrikingthat27countriesintheAsia-Pacificregionaccountfor76%of

currentglobalcoalgenerationcapacity,11given

theongoingeconomicgrowthneedsacrossthe

region.Thisrealitystandsinstarkcontrasttothe

NetZeroby2050scenariooftheInternational

EnergyAgency(IEA),whichrequiresan89%

declineincoal-derivedenergysupplyby2050.12

Thisdivergenceunderscoresamonumental,time-criticalopportunity:Asiancarbonmarketsmust

drivetransformativeintegrationofeconomicand

environmentalprioritiestoacceleratethistransition.

Ascriticalenablers,carbonmarketshelp

mobilizeresourcesandreducetheoverallcostofdecarbonization,grantingcountriesandcompaniestheflexibilitytobalanceeconomicgrowthand

emissionsreductionsastheynavigatetheirlow-

carbontransitions.Althoughcarbonpricingwill

affectoperationalandproductcosts,itisestimatedthatcarboncredittradingcouldcuttheoverall

price-tagforimplementingnationallydetermined

contributions(NDCs)bymorethanhalf–savingupto$250billionby2030.13Lastyear,globalcarbonpricingmechanismsmobilizedover$100billionforpublicbudgets,14highlightingtheirstrategicvalueinfinancingclimateaction.

1

Asia,sCarbonMarkets:StrategicImperativesforCorporations8

Asia,sCarbonMarkets:StrategicImperativesforCorporations9

Regionaloverview

1.1

ComparedtotheEUsmature,singlejurisdiction

carbonmarket,Asiafeaturesmultiplelarge,diverseandfast-growingcarbonmarkets,eachata

differentstageofdevelopment.Intotal,theregionhosts17nationalorsub-nationalcarbon-pricing

instrumentsandfournationalemissionstrading

systems(ETS)thatgenerateover$4billionfrom

carbonschemes.15Aspivotalinstrumentsforajusttransition,thesemarketsrequiregreateralignment,particularlygiventhesignificantvariabilityincarbonpricingacrossAsianeconomies.Achievingcarbonpriceconvergencewillbekeytomobilizinglarge-scaleinvestmentforlow-carbontransformation.

Asiascarbonmarketsareevolvingwithdistinctcharacteristics,whichcanbecategorizedintothreegroups:

Chinaasauniquecase,whichoperatestheworldslargestcarbonmarket,underpinnedbyitsvastemissionsprofile,acomplex,rapidly

scalingETS,anditsrelaunchedvoluntary

carbonmarket(ChineseCertifiedEmissionsReductionorCCER).

DevelopedAsianeconomies,suchas

Japan,SouthKoreaandSingapore,which

haveestablishedadvancedcarbonpricing

mechanisms,leveragingtheireconomicmaturityandpolicyinnovationtoreduceemissions.

EmergingAsianeconomies,includingIndia,Indonesia,Thailand,MalaysiaandVietnam,

whicharedevelopingnascentcarbonmarkets,overcomingstructuralandregulatorychallengestolaythegroundworkforfuturegrowth.

Recognizingthepotentialofcross-border

interconnectivity,Asiannationsareundertakingpreliminaryeffortstoconnectmarkets,exploringpilotsandmodelsthatcouldserveasglobal

examplestoamplifytheircollectiveimpact.

ManyAsiancountriesareembracinginnovation

byembeddingdigitaltechnologiesintotheir

carbonmarkets,highlightingtheneedtofurther

discussshareddatainfrastructureforenhancing

marketintegrity.Meanwhile,Asiashighdegreeofindustrialsupplychainintegrationinmanufacturing,renewableenergyandothersectorsmeansthat

intra-regionalcarbonmarketcooperationcansignificantlyacceleratetheapplicationoflow-carbontechnologiesacrossvaluechains.

ThischapterexploresChinascarbonmarketasacornerstoneofregionalandglobalclimateaction,

givenitsscaleandinfluence,emphasisingthe

importanceofstrengtheningChinasroleinglobalclimategovernance.ItalsoexaminesthepioneeringapproachesofJapan,SouthKoreaandSingapore,alongsidethepotentialofemergingAsianmarkets.Byexploringthesedevelopments,thechapter

identifiesopportunitiesforregionalcollaboration,includingmarketlinkages,knowledgesharingandharmonizedstandards.

CarbonmarketsinkeyAsiancountries

TABLE1

Marketoverview

Region

TheworldslargestETSmarket,withmarketcapacityreaching8billiontonnesCO2-equivalentby2025andexpandingtoanestimated9-11billiontonnesby2030.

China

Voluntarymarket(CCER)relaunchedin2024.

JapanNationalGX-ETS(2026)buildson15+yearsofregionalpilotsinTokyo(2010)andSaitama(2011).

J-Credit(domestic)andJCM(tech-transfercredits)dominatevoluntarymarket.

SouthKoreaFirstnationalETSinEastAsia,covers816topemittersasof2024.

K-ETSoffsetsdrivethevoluntarymarket.

IndiaVoluntarycarbonmarketdominates(ledbyrenewableenergyprojects),with10certifiedsectorsby2024.

Pilotinganationalcompliancemarketwithdetailedregulationsadoptedin2024.

SouthEastAsiaPilotingcompliancemarkets:ETSinforceinIndonesia,underdevelopmentinVietNamandMalaysia,under

considerationinPhilippinesandThailand.

Singaporehasadoptedcarbontaxeswithcarboncreditcompensationmechanisms.

VoluntarymarketfeaturesNbScarboncreditswithhighforestcoveragerate.

Regionalcooperationframeworks(e.g.ACCF)areemerging.

Notes:CO2e=carbondioxide-equivalent;CCER=ChineseCertifiedEmissionsReductionmarket;GX-ETS=JapansGreenTransformationEmissionsTrading

Scheme;J-Credit=Japansdomesticcarboncreditsscheme;JCM=JapansJointCreditingMechanism,bywhichJapanprovidesdevelopingcountrieswith

advanceddecarbonizationtechnologies;K-ETS=KoreasEmissionsTradingScheme;NbS=nature-basedsolutions;ACCF=ASEANCommonCarbonFramework.Sources:InternationalCarbonActionPartnership,WorldBankGroup,Bain&Companyanalysis.16

Asia,sCarbonMarkets:StrategicImperativesforCorporations10

1.2China–theworld,slargestcarbonmarket

Overview:ajourneyofevolution

The2020“dualcarbon”goals–peakingemissionsby2030andachievingneutralityby2060–furtherstrengthenedthepolicyframework,cementing

thecarbonmarket’sstrategicrole.Asof2025,

thenationalETSregulatesover8billiontonnes

ofcarbonemissions,covering60%ofindustrial

emissions.17Thispragmaticevolutionhascreatedaunifiednationalmarket,advancingChina’sclimateagenda.Meanwhile,China’scarbonmarketfully

recognizesthecomplexityanddifficultyoflow-

carbontransformation.Itisadelicatelydesigned

systemforbalanceddevelopmentandemissions

reduction,whichcanprovideawealthofexperiencefordevelopingmarkets.

China’scarbonmarket,theworld’slargestby

emissionscoverage,hasevolvedoveradecade,

integratingglobalexpertisewithlocalcontext.ItsrootslieinextensiveparticipationintheCleanDevelopmentMechanism(CDM)undertheKyotoProtocol,whichprovidedvaluablecarbonmarketexperience.

Drawingonglobalcarbonmarketmodels,significantadaptationsofadual-tracksystemweremadeto

alignwithChina’seconomicandindustrialrealities.

Thesystemiscomposedofbothcomplianceand

voluntarycarbonmarkets,promotingthedevelopmentofnewtechnologiesanddecarbonization.

AsillustratedinFigure2,thisjourney,whichbeganin2011,wasmarkedbyiterativeexperimentation.ThesestepsrefinedmechanismsandbuiltcapacitytoalignglobalpracticeswithChina’sneeds.

FIGURE2DevelopmenthistoryofChina,scarbonmarket(2011-2025)

Policyguidance

TheNationalDevelopmentandReformCommission(NDRC)1

issuedthe"NoticeonLaunchingCarbonEmissionsTradingPilotWork”andapproved7provincesandcitiestocarryoutcarbon

tradingpilotwork.

Coursecorrect

TheNDRCsuspendedthe

acceptanceofapplicationfor

CCERmethodologies,projects,emissionsreductions,veri?cationandcerti?cation,andtrading

institutions.

Revision&relaunch

InOctober2022,theMinistryofEcologyandEnvironment2

mentioneditsintentiontorevisetheInterimMeasuresforCCERtrading.China’sCCERmarket

wasrelaunchedinJanuary2024.

Methodologydevelopment

TheNDRCsuccessively

issued200methodologiesforvoluntarygreenhousegas

emissionsreductions,including174transformedfromtheUN’sCleanDevelopmentMechanism(CDM)methodologies,while26werenewlydeveloped.

2024

2012201420162020&2021

20112013201520172022&20232025

Regulations

Measurespublishedto

systematicallyregulatethe

processofChina’sCerti?ed

EmissionsReduction(CCER)projectemissionsreductionsfromgenerationtotransaction.

Piloting

FromJune2013toJune2014,7provincesandcities3launchedcarbonmarketpilotprojects.In2016,Sichuan4andFujian

establishedlocalexchangesoutsidethepilotareas.

IntegrationwithETS

Nationalcerti?edvoluntary

emissionsreductionscanbeusedtooffsetthepaymentofcarbon

emissionquotas.

ETSindustryexpansion

FormalannouncementofETSexpansiontocover8carbonintensiveindustriesby2030:

power,steel,cement,electrolyticaluminiumby2025(~8billion

tonnes);petrochemicals,

chemicals,papermakingandaviationby2030.

Newera:Nationaluni?edcarbonmarketwithregionalinnovationattempts

Regionalpilotphase

Notes:

1.TheNDRC(aministerialdepartment)overseeseconomicandindustrypolicyframeworks,guidingcarbonmarketalignmentwithnationaltargets.

2.TheMinistryofEcologyandEnvironment(MEE)ofthePeople’sRepublicofChinaistheprimaryregulatorofcarbonmarketoperations.

3.Beijing,Tianjin,Shanghai,Chongqing,Hubei,GuangdongandShenzhen.ShenzhenisacityinGuangdongprovince,butistreatedasaseparatepilotarea.

4.Sichuan’scarbonexchangeonlycarriedoutCCERtra