In this episode of ICAP's Carbon Market Conversations, host Trevor Laroche-Theune takes listeners on a deep-dive into the China National Emissions Trading System with Zheng Zhang, Director for Climate Finance at the Environmental Defense Fund Beijing Office. Today’s conversation focuses on what makes China’s ETS unique, how it has overcome challenges from its early stages, the expected impacts of the EU CBAM in China, the future outlook for ETS scope expansion, lessons that emerging economies can learn from China’s experience, and much more. A more detailed breakdown of the topics explored and where you can listen to them is listed below:

0:55 - Introduction to today’s topic and our guest, Zheng Zhang of the Environmental Defense Fund Beijing Office

2:25 - Introduction to the China National ETS and what makes it unique

3:40 - Main objectives of the ETS

4:15 - China’s climate goals and how the ETS aligns

6:08 - Historical development of the China National ETS

9:00 - Challenges that were faced and how they were addressed

11:40 - Expected impacts of EU CBAM for Chinese industry

13:30 - Expected impacts of EU CBAM for China’s approach to carbon pricing
16:00 - ETS scope expansion outlook and other opportunities for system development
18:45 - Carbon market linking potential

20:50 - Lessons for emerging economies that are implementing, developing, or considering an ETS

24:00 - The core challenge that China’s National ETS must get right in the coming years, and what steps can be taken towards finding its solution

27:25 - Closing remarks

More information about ICAP and the China National ETS can be found here: https://icapcarbonaction.com/en/ets/china-national-ets