China has embarked on an active campaign to introduce innovative financing models to fund its transition to a more sustainable economy. One of those models is the development of a national carbon market, which began in 2013 with the launch of several regional pilot trading markets.

The national Chinese pilot carbon market is on pace to become the most extensive carbon trading system in the world. Despite its size, China’s carbon trading system still faces an uphill climb as it navigates challenges such as adequate data collection, enforcement, and the development of the necessary financial infrastructure.

China is the largest carbon emitter in the world – more than the United States and the European Union combined. It actions are critical to the success of climate change reduction. The Paulson Institute is supporting China’s efforts to promote effective carbon trading with pilot projects, thought leadership, and capacity building while promoting globally accepted standards and concepts.

Carbon Markets Timeline