Project-based carbon trading: A flexible mechanism to promote trans-regional cooperation
Journal Title: Energy Environmental Protection - Year 2023, Vol 37, Issue 2
Abstract
The industry baseline method is adopted to allocate carbon allowances in China's national carbon market, neither considering its huge inner regional disparity, nor exhibiting enough flexibility to promote renewable energy. The origination, development and regional imbalance were discussed, and a project-based carbon trading of trans-regional cooperation mechanism was proposed under the direction of theories of carbon trading, trans-regional coordination and ecological compensation. In the proposed mechanism, allowance re-allocation is suggested under the principle of responsibility sharing between producing and consuming areas, and the reduction volume produced through the trans-regional investment projects can be allowed to offset the investor′s carbon allowance compliance. Based on the analysis, we pointed out that this flexible mechanism could help achieve a win-win situation between Eastern and Central & Western China. Suggestions to establish the mechanism were given, including the methodology probing, the institutional designing, and the pilot-program raising.
Authors and Affiliations
LIAO Zhenliang*|Institute of Carbon Neutrality, Tongji University, China, Engineering Research Center of Northwest Energy Carbon Neutrality of Ministry of Education, Xinjiang University, China, SHEN Yifan|School of Economics and Management, Tongji University, China, YAO Qiang|School of Electricial Engineering, Xinjiang University, China
Keywords
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- EP ID EP737836
- DOI 10.20078/j.eep.20221202
- Views 37
- Downloads 0
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