Towards a market-based climate regime in China? A legal perspective on the design and implementation of greenhouse gas emissions trading

In order to reduce greenhouse gas emissions and thereby to address climate change effectively, market-based instruments, such as Emissions Trading Scheme (ETS), has been introduced and applied at different levels with various designs. Both the establishment of the EU ETS and the Chinese ETS follow the experimental approach, and a comparative analysis shows that there are important similarities and remarkable differences between them. In view of China’s aim to strengthen the rule of law, this research provides recommendation for Chinese policy-makers to improve the regulatory design and implementation of the Chinese ETS, taking account of the legal experiences with the EU.