The Climate Department of China's National Development and
Reform Commission (NDRC) recently published an article entitled
"Regarding the Fundamental Conditions and Operational Thinking
Behind the Promotion and Establishment of the National Carbon
Emissions Rights Trading Market" (National Market
Plan).1 This is significant as it addresses some basic
questions that many observers have been asking about China's
anticipated national carbon trading market, and lays out a roadmap
of how China plans to develop this market over the coming years. At
this moment, much remains to be done in terms of liquidity and
efficiency for this market to achieve its real potential.
Background Last November, China announced its
aim for the country's overall carbon emissions to peak and then
start to decline by 2030.2 The development of its
domestic carbon trading market is a major component of China's
strategy to reduce carbon emissions. To this end, China has
launched seven regional
