The Interconnection Ideas for Carbon Emissions Trading Market in Guangdong, Hong Kong, Macao and Greater Bay Area

Abstract

Building the interconnection mechanism of carbon emission trading market in the Guangdong-Hong Kong-Macao Greater Bay Area is an innovative exploration to promote regional carbon emission reduction. This paper analyzes the feasibility of interconnecting carbon emission trading markets in the Bay Area from the perspectives of the difference between industrial structure and energy consumption, as well as the compatibility of carbon emission trading systems, by analyzing the operation status of carbon trading markets in Guangdong, Shenzhen, Hong Kong, and Macao, and the experience of Guangdong and Shenzhen as the Chinese carbon trading pilot. Based on the above discussion, this paper puts forward three adjustment ideas for the interconnection of the Bay Area Carbon Market: providing legal support, unifying the access to industry sectors and its quantities, and establishing a complete carbon emission monitoring, reporting and verification institution.