Consideration of some key issues of carbon market development in China

The global carbon market has developed rapidly with two significant trends of globalization and financialization. Deriving economic interest is a nation driven-force behind the international climate negotiation and carbon market. According to deeply analyzed relationships between the carbon market and the key subjects of the climate negotiation, this article reveals that promoting the development of the global carbon market is one of the core interests of developed nations. Based on the background of international carbon market development and domestic carbon market pilots, four suggestions to the key issues of China’s carbon market are provided. The first is that the goal of China’s carbon market should be in line with and contribute to the national objectives and policies addressing climate change. The second is that the Chinese carbon market should mainly target the emission reduction of production-sectors, and contribute to their upgradation and transformation. The third is that the development of the nation-wide carbon market in China should first take the principle of unbalanced regional development into consideration. The fourth is that linking China’s carbon market to the international market should keep steps in line with international opening-up of China’s financing system.