Developing countries being prospective players in climate governance: a case study of China’s carbon market

Abstract Although most of the developing countries around the world currently remain reluctant to make clear commitment to climate change, this does not mean that such a situation will not be changed in an expectable future while the climate risk is getting increasingly urgent. This reality also does not imply that there is substantive institutional barrier to establishing effective carbon markets in developing countries. In this article, we will take China as an example and examine its evolution of the domestic legal and regulatory systems of carbon markets to consider the essential roles of private law system of carbon markets in developing countries. Finally, we will analyze the role of Chinese overseas investment in developing countries to promote carbon neutrality among them and provide a feasible platform for them in means of introducing financial instruments through international cooperation.