China needs to improve carbon pricing mechanism: report

Photo taken on July 16, 2021 shows a screen displaying real-time information of national carbon emission trading in Wuhan, central China's Hubei Province. (Xinhua/Xiao Yijiu)

BEIJING, Sept. 9 (Xinhua) -- China should step up efforts to improve its carbon pricing mechanism, a recent report said.

Carbon pricing is a vital policy tool for achieving the country's carbon-neutrality goal, said the report by the China Council for International Cooperation on Environment and Development. It cited China's latest progress in building a national carbon market.

The report, however, pinpointed problems in the current carbon pricing mechanism, including its weak connection with the overall climate targets, ill-defined property rights of carbon assets, and market entities' lack of vitality.

Accordingly, the carbon market should set clear-cut caps on carbon emissions. It should also increase the emission permits sold by emitters, said the report.

More heavy-emitting sectors should be incorporated into the carbon market over time, said the report, also calling for future rises in carbon prices and carbon-cutting technology innovation.

China's national carbon market, the world's largest in terms of the amount of greenhouse gas emissions covered, launched on July 16, marking a significant step from China to reduce its carbon footprint and meet emission targets.

The country announced that it will strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.