Carbon Market Trading and the Need for China to Mandate Coal Phase-Out by 2045
China's Strong Mandate for Coal Phase-Out
China’s reliance on coal is problematic for its carbon neutral goals. Experts advocate for a robust mandate to phase out coal by 2045. As Simon Sharpe from S-Curve Economics highlights, this mandate could drive a transition to a clean energy system earlier than anticipated.
Impact of Carbon Market Trading vs. Mandates
While carbon market trading has benefits, experts argue that it is less effective than outright mandates. Structural changes and targeted policies are crucial to facilitate this transformation, particularly in heavy industries like steel production.
Recommended Global Mandates
- Phase out coal power in developed economies by 2035.
- Achieve a complete transition to zero-emission vehicle sales by 2035.
- Implement heating systems that utilize 100% heat pumps by 2035.
Such measures could notably reduce carbon emissions and ensure that clean energy outpaces fossil fuels sooner than current projections.
Challenges and Solutions for China
Despite being the largest user of renewable energy, China faces challenges, such as inadequate energy storage systems and regional disconnects. Experts suggest that reallocating investments and implementing a carbon floor price could drive change more effectively.
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.