Legal issues in the implementation of China's emissions trading scheme

Abstract

China has restated its goal to achieve carbon neutrality before 2060, and the newly launched national emissions trading system (ETS) of 2021 is expected to play a leading role in achieving it. By examining the core design elements of the ETS, this study analyses the legal impediments that may prevent the ETS from achieving China's climate goal. These challenges largely result from a regulatory framework that lacks concrete provisions and effective mechanisms to reduce emissions. By doing so, this study aims to shed some light on potential improvements in ETS regulation, and the role judicial procedure could play in justifying the behaviours of the ETS participants.