The Guangdong carbon market is the largest regional carbon market in China, and the main market indicators are also leading the country. The Guangdong carbon market has distinctive features such as perfect system construction, open and transparent rules, full participation of major stakeholders, and strong market openness. Although Guangdong is a major economic province, the problem of uneven development in the region is still outstanding. Therefore, compared with many other pilot markets, the construction and operation of the Guangdong carbon market faces many complex issues that require special consideration and are very difficult. Since being approved as a pilot, Guangdong has been actively promoting the construction of the carbon market from all aspects, continuously revising and improving the market design on the basis of regular evaluation of the market ’s operating effects, and insisting on the strict implementation of various rules and regulations. The company's compliance rate, market turnover, carbon finance innovation practices, and the integration of the carbon inclusive system and pilot projects have all achieved gratifying results, effectively promoting energy conservation, carbon reduction and emission reduction. The pilot practice in Guangdong provides a very important reference for the construction of the national carbon market.
The operation of the Guangdong carbon market also faces problems and challenges that need to be addressed, especially the possible impact of the upcoming national carbon market on the pilot system. The national carbon market will first be included in the power generation industry and will gradually be included in key emission industries such as cement. Uncertainty in the construction and coverage of the national carbon market will affect the future policy formulation and implementation of each pilot carbon market. At this stage, policy and market uncertainties are both opportunities and challenges for various market participants.
Suggestion one is to closely track the construction and operation of the national market, analyze its possible impact on the Guangdong market, strengthen the coordination of the Guangdong regional market and the national market, and try to reduce the uncertainty and risks that may arise from the simultaneous operation of both. The second is to continue to carry out research on derivative trading varieties such as carbon emission rights futures, and continue to carry out innovations in carbon financial products to provide new references for the construction of the national market. The third is to speed up the exploration of various forms of cross-border carbon trading cooperation to provide meaningful practice for future cooperation between the national market and foreign systems.
Duan Maosheng, Director of China Carbon Market Research Center, Tsinghua University
