In the context of the increasingly urgent global climate crisis, carbon pricing, as an innovative environmental and economic policy, is gradually becoming a key strategy for governments and businesses around the world to address climate change. It can not only effectively reduce greenhouse gas emissions, but also stimulate green technology innovation and promote green economic growth. This article aims to explore in depth the connotation of carbon pricing, the current implementation status and development trends globally and in China, and to elaborate on its core role in achieving the vision of "carbon neutrality".
1. The concept and form of carbon pricing
Carbon pricing, in short, is setting an economic value per ton of carbon dioxide emissions to internalize the environmental externalities of carbon emissions. This mechanism encourages businesses and consumers to consider the economic costs of carbon emissions when making decisions, thereby spontaneously reducing emissions. Carbon pricing mainly includes three forms: carbon tax, carbon emissions trading system (ETS), and carbon compensation mechanism.
· Carbon Tax：The government directly imposes taxes on carbon emissions, increases emission costs, and incentivizes emission reduction.
· Carbon Emissions Trading System：By allocating and trading carbon emission rights through market mechanisms, the government sets a total emission limit and gradually reduces it, achieving overall emission reduction.
· Carbon compensation mechanism：Generate tradable carbon offsets through certified emission reduction projects, increase market flexibility, and supplement traditional carbon pricing tools.
2. The Development History and Current Status of Global Carbon Pricing Mechanism
The development of global carbon pricing mechanisms has gone through three stages: from inception to diversification and then to globalization. The initial stage (1990-2004) was marked by some European countries such as Finland and Sweden being the first to implement carbon taxes. In the diversified development stage (2005-2015), with the entry into force of the Kyoto Protocol and the launch of the EU Emissions Trading System, carbon taxes and ETS gradually matured, and multiple countries established their own ETS. In the stage of globalization and deepening (2016 present), after the Paris Agreement, more than 130 countries and regions proposed the goal of "carbon neutrality", and the global carbon pricing mechanism rapidly expanded. By the end of 2023, a total of 74 mechanisms were in operation, among which the EU ETS accounted for about 43% of the global carbon pricing revenue, demonstrating its market size and price advantage.
3. Progress in the Implementation of China's Carbon Pricing Mechanism
China has also made significant achievements in the construction of carbon pricing mechanisms. At present, China's carbon pricing mechanism mainly includes the National Carbon Emissions Trading System (National Carbon Market) and internal carbon pricing within enterprises, while carbon tax is still in the research stage. The national carbon market has covered emissions far exceeding those of the EU ETS, but it adopts a free quota allocation mechanism with lower emission control costs. However, with the release of the Interim Regulations on the Administration of Carbon Emission Trading and the launch of the voluntary emission reduction trading market, the price of CEA continues to rise, indicating an increase in market demand for carbon emission reduction and policy support.
The development of China's carbon market has gone through three stages: CDM project stage (2005-2012), regional carbon emission trading pilot stage (2013-2020), and national carbon market development stage (2021 present). Paid bidding has been attempted in China's eight pilot carbon markets, but the proportion is relatively low. In the future, China is expected to enhance the market price discovery function by increasing the bidding ratio, optimizing carbon quota allocation. Meanwhile, the offsetting mechanism plays an important role in China's carbon market, promoting the development of emission reduction projects, enriching trading varieties, and enhancing market activity.
4. The impact of carbon pricing on the economy and environment
Carbon pricing incentivizes businesses and consumers to choose low-carbon alternatives by increasing the cost of high carbon products and services, promoting industrial restructuring and technological innovation. In high emission industries such as energy, transportation, and manufacturing, carbon pricing promotes the application of clean energy and the development of energy-saving technologies, accelerating the green transformation of the economy.
The expansion of the global carbon pricing mechanism promotes the coordination and cooperation of climate policies among countries, optimizes the allocation of emission reduction costs, and enhances the effectiveness of global response to climate change. At the same time, carbon pricing provides a unified carbon cost consideration standard for multinational enterprises, promoting the green upgrading of global supply chains.
Especially carbon tax, it brings fiscal revenue to the government for environmental protection projects, green technology research and development, and climate adaptation measures, enhancing the country's ability to respond to climate change. ETS provides revenue to the government through carbon quota auctions, supporting green transformation and achieving climate goals.
The internal carbon pricing mechanism of enterprises encourages them to consider carbon costs in decision-making, promote low-carbon investment and management optimization, improve energy efficiency, reduce operating costs, and enhance competitiveness in the global low-carbon economy. More and more companies are incorporating carbon pricing into their strategic planning, becoming an important force in promoting green development in the industry.