Lessons from the development and operational experiences of international carbon markets for the construction of China's carbon market

With the intensifying global climate crisis, carbon emissions trading has emerged as a crucial market-based instrument for emissions reduction, attracting significant attention from government agencies and academia worldwide. As of January 2024, 28 carbon trading markets have been established globally, encompassing approximately 17% of global greenhouse gas emissions and serving approximately 1/3 of the global population. With various nations setting carbon neutrality targets and delineating carbon reduction pathways, the construction, operation, and regulatory frameworks of carbon markets are becoming increasingly refined and comprehensive. This study elucidates the importance and necessity of establishing carbon markets from the perspective of energy system transformation and sustainable economic development. Second, it provides a comparative analysis of the operational mechanisms, trading scales, and emission reduction outcomes of major carbon markets in the European Union, United States, and New Zealand, systematically summarizing their development processes and recent advancements. Finally, this study addresses issues and challenges in the construction of China's carbon market. Drawing on the successful experiences of leading global carbon markets in institutional design and market operations, we propose development strategies and recommendations for a carbon market with Chinese characteristics. These strategies are intended to align with international standards while meeting China's national conditions, thereby contributing insights into the global carbon market trading system.