China and California’s carbon emissions trading systems are two of the world’s largest and have a longstanding collaboration. China’s national system began official operation in July 2021, building on several years of provincial and municipal pilots. California’s cap-and-trade program has been operating since 2013, and is an important component of the state’s comprehensive suite of policies to meet its 2045 carbon neutrality goal. Our research analyzes carbon markets in California and China, and potential for linkages with other regions, including identifying areas for potential subnational collaboration on carbon market design and implementation. In addition, we host technical workshops and training sessions designed to support capacity-building in this domain. 


China Launches World’s Largest Carbon Market

China’s long-awaited national emissions trading system (ETS) launched last week, following prolonged anticipation. The effort was first announced in 2011, during the 12th Five-Year Planning process, as part of a broader strategy for enhancing green development.

A Pathway to Progress: Informal Linkage and California and China's Carbon Markets

Carbon pollution exacts a tremendous cost on our economy, environment and health. One key action we can take to reduce these damaging emissions is to put a price on carbon.




Aimee Barnes, Fan Dai, Jenn Perron 

In collaboration with UCLA colleagues Alex Wang, Cara Horowitz, and Siyi Shen and Tsinghua University Institute of Climate Change and Sustainable Development colleagues

This work is generously supported by The Berggruen Institute.