Carbon Market Trading and the Urgent Call for Coal Phase-Out Mandates in China
The Necessity of Mandates in Carbon Market Trading
Implementing strong mandates to phase out coal power could accelerate China's clean energy transition, according to experts. Simon Sharpe from S-Curve Economics emphasizes that a mandate holds more power than mere carbon market trading.
Current State of Coal Power in China
China, the world's largest coal consumer, has announced plans to phase down coal usage from 2026. However, to successfully transition towards zero-emission goals by 2060, the government must enforce surer policies rather than relying solely on market mechanisms.
- Phase-out of coal power in developed economies by 2035
- 2045 deadline for developing economies
- Targeted policies for zero-emission industrial production
Challenges to Clean Energy Transition
Despite significant strides, including reaching solar and wind capacity goals early, coal still makes up to half of China’s energy consumption. Experts point out that significant changes to existing power structures and practices are essential.
- Reallocation of investments from fossil fuels to clean energy
- Development of energy storage systems
- Introduction of a carbon floor price to make coal less competitive
Tim Lenton from the Global Systems Institute highlights that the right mandates could make clean energy cheaper than fossil fuels by 2045. Without prompt action, the costs associated with climate inaction will continue to escalate.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.