China's national carbon market has shown promising growth since its inception, with significant trading volumes and rising carbon prices. However, several challenges and deficiencies have surfaced during its operation, hindering the formation of a transparent and fair carbon price. To address these issues and enhance the effectiveness of the market, Ecologic Institute are providing research activities as part of an international consortium led by ICF.

By conducting a joint research effort, this project aims to enhance the regulation and functioning of China's national carbon market. The collaboration between Chinese and European experts will enable the exchange of expertise, best practices, and policy recommendations for refining the Chinese ETS, ultimately contributing to the success of China's carbon market and the global efforts towards climate neutrality. One of the main tasks for Ecologic Institute will be to provide an overview of market oversight solutions found in other carbon markets around the world, and to distil relevant insights for improving the trading methods and management of the Chinese ETS.