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This book seeks to model the possible emission trajectories and identify the feasible mitigation schemes for China to meet its climate commitments to peak emissions by 2030 and net zero emissions by 2060. In line with these ambitions, China has taken a number of measures to improve energy efficiency and energy structure in recent years. The book first analyses changes in the carbon footprint at the city level and identifies the different pathways to peak emissions by province and industry to develop a bottom-up approach to determining when and how China could reach peak emissions. It then illustrates how the Emissions Trading Scheme (ETS) reduces abatement costs and examines the cost-saving effects under carbon intensity reduction and peak emissions targets. Based on the findings and the status quo in China, the authors propose a multi-criteria allocation scheme for carbon emission allowances at the provincial level and quantify the impact of sectoral coverage on the abatement costs of the ETS by developing a cost-based approach to sectoral coverage in China. In addition, the co-benefits between CO2 and PM2.5 reductions as a result of the ETS operation are elaborated. The title will benefit researchers and policy-makers interested in environmental governance, climate policy, environmental economics and sustainable development.
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