Diversified pathways for China to realise the “dual carbon” goal

China has promised the world that it will reach the carbon peak by 2030 and achieve the goal of carbon neutrality by 2060. The year 2021 is the beginning of the countdown to China’s carbon neutrality goal. As a developing country with the highest carbon emissions in the world, what path will China take to achieve the Carbon Peak and Carbon Neutrality goal?  

Path to realise carbon neutrality 

The answer is that the diversified road, including technical innovation, market liberalization, government policy, green concept of production and living, international cooperation as well as development of laws and regulations, is a feasible and necessary path to realize carbon neutrality. 

Ensuring sustainable carbon neutralisation through collaborative efforts across sectors 

• Technology: The realization of the goal of carbon neutrality first depends on the technical support, especially the breakthrough low-carbon technology. Therefore, it is necessary to strengthen the R&D and application of cutting-edge low-carbon technologies and take the road of developing low-carbon technologies. 

• The role of the market: The establishment of market, especially carbon trading market, can play an economic role in encouraging carbon emission reduction, to finally promote the realization of carbon neutralization goal. 
• The role of the government: The market, however, has natural limitations, and the carbon market is not a spontaneous market, it is a market cultivated by the government (for example, the allocation of carbon emission quota, carbon emission permit and the establishment of market trading rules), so the government must play an important role. China will promote and ensure the realization of carbon neutralization goal through various administrative means and policy measures 
• Green concept: From the perspective of economic and social development, China is facing the dual dilemma of economic development and control of environmental pollution and high carbon emission. China must change the concept of traditional development and its economic structure, combining the low-carbon actions to deal with climate change with eco-environmental governance, and taking a comprehensive low-carbon green transformation road of economic and social development. 
• International cooperation: The final solution to the problem of carbon emissions, or the full realization of the goal of carbon neutralization, depends on the joint actions of all countries in the world.  

 In order to achieve the goal of carbon neutrality as soon as possible,  China is taking a diversified and comprehensive road of governance. FIPRA China will actively participate in the international cooperation and be the voice of low-carbon development.

Haiying Yuan, Founder & President, FIPRA China / Yuan Associates

• Legal system: The goal of carbon neutralization is not achieved overnight. All these technical, market, administrative, green and international carbon neutrality actions and programs must be long-term, lasting, stable and effective. Therefore, China will establish a legal system to ensure the efforts and path of carbon neutralization be sustainable.  

FIPRA China, known locally as Yuan Associates, stands ready to assist global firms in understanding the regulatory and policy implications of these on your business.