2020 China Carbon Pricing Survey

This report summarises the results of the 2020 China Carbon Pricing Survey. The survey elicited expectations about the future of China's carbon price from stakeholders in carbon markets in China during July-August 2020. Through cooperation with industrial associations, the project team reached a wide range of representatives from China's carbon-intensive industries, especially power generation, which are already subject to, or are soon expected to be subject to carbon pricing. As the largest survey of its kind yet conducted, the results continue to give strong confidence that carbon price levels in China will rise over time, and that carbon pricing will increasingly affect investment decisions. The Chinese government announced in September 2020 that the national carbon market will accelerate the construction of the nationwide ETS, and the majority of power sector respondents indicated that they expect the sector to be ready for full compliance obligations in a national carbon market next year. The carbon market is expected to be an important policy instrument to motivate companies to reduce GHG emissions in the coming decade, as part of a suite of policy tools. There is strong confidence that China will meet its target to peak carbon emissions by 2030. Many expect that the peak in emissions may be reached significantly earlier. Many respondents expect a delay in the rollout of the national carbon market because of the COVID-19 pandemic.

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