Asia Pacific > Asia > Gradual phase-in of ETS auctions offers best route to decarbonise China’s power sector -study

Gradual phase-in of ETS auctions offers best route to decarbonise China’s power sector -study

Published 19:33 on June 19, 2026 / Last updated at 19:33 on June 19, 2026 / Asia Pacific (Asia, Compliance Markets & Taxes)

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China should gradually expand carbon allowance auctions and tighten emissions caps in its national ETS rather than pursue an aggressive reform pathway, according to a modelling study published this week that warns rapid changes could destabilise domestic CO2 prices and threaten power system reliability.
China should gradually expand carbon allowance auctions and tighten emissions caps in its national ETS rather than pursue an aggressive reform pathway, according to a modelling study published this week that warns rapid changes could destabilise domestic CO2 prices and threaten power system reliability.


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