Coupling mechanism between green power market and carbon market in China

To address climate change, China has gradually introduced market mechanisms including national carbon market and voluntary greenhouse gas emission reduction trading mechanism. On the other hand, under the background of the "dual carbon" goal, vigorously promoting the strategic path of deepening the energy revolution has brought new strategic opportunities to renewable energy and formed market mechanisms such as green power certificate trading and green power trading. The carbon market and green power market are closely related in terms of core product attributes, policies, technology, market positioning, etc. Effective coordination at the institutional level will be conducive to forming a joint force to promote the development of clean energy and carbon reduction in industry and society. However, currently, various environmental rights products are still in a relatively isolated development state and lack effective mechanisms for mutual recognition and connection. In this study, by combining the current development status of the green power market, carbon market and other market construction in China, the operating mechanism of each typical market is analyzed, and the correlation and interactive impact mechanisms among multiple markets is explored. Following which, the problems of inaccurate carbon emission accounting and duplicate certification of emission reductions in the process of connecting and recognizing different types of environmental rights products such as green power certificates, green power consumption, carbon emission rights, and CCER are discussed. Finally, a framework for the connection and mutual recognition between the green power market and carbon market is constructed, and relevant policy recommendations are proposed.