Abstract:

【Objective】The establishment of the national carbon market represents a significant institutional innovation for reducing greenhouse gas emissions through market mechanisms and promoting green and low-carbon development. It also serves as a crucial policy instrument for advancing the achievement of the carbon-peak goal and the carbon-neutrality vision. The scientific, fair, and reasonable allocation of carbon emission quotas lies at the core of the carbon trading process. This study analyzed the allocation of carbon emission quotas within the carbon trading system based on the current situation and proposed optimization strategies to offer references for the development of China’s carbon trading market.【Method】Adopting the research path of “status quo-problems-countermeasures”, this study employed methods such as literature review, case summarization, and comparative analysis. It analyzed the quota allocation models of major international carbon markets, summarized the current status and main problems of China’s carbon emission quota allocation mechanism, and puts forward relevant suggestions for future mechanism and strategy optimization.【Result】(1) From an international perspective, the practical experiences of major markets in carbon emission quota allocation were summarized. For instance, setting appropriate emission-reduction targets and flexible adjustment mechanisms in the carbon market, building sufficient confidence in participation and a stable price mechanism, as well as establishing a sound and perfect market mechanism and supporting legal system, provided valuable insights and references for the orderly implementation of a combination of free and paid carbon emission quota allocation methods.(2) From a domestic perspective, the current situation of China’s carbon emission quota allocation was summarized. With the development of China’s carbon trading market, certain achievements have been made in carbon emission quota allocation, including the gradual optimization of the tier-by-tier total quota amount, the progressive expansion of the covered industry scope, the diversification of allocation principles, and the gradual transition of the allocation mode from free to paid. Nevertheless, there are still numerous issues to be addressed, such as the need to improve the top-level design, the relative simplicity of the allocation method, the lack of stimulation of market vitality, and the necessity to enhance supporting measures.【Conclusion】Based on the current situation and future development trends of China’s carbon emission quota allocation, it is essential to strengthen the overall planning and top-level design of allocation, promote the progressive development of allocation, establish a scientific and reasonable trading ecosystem, improve laws, regulations, allocation methods, market mechanisms, and other supporting measures, and promote the market-based empowerment and optimization of the carbon emission quota allocation strategy. This will offer solution paths and model references for the development of China’s carbon trading market and the effective realization of carbon-emission-reduction targets.

Key words: carbon emissions trading, carbon emission allowance allocation, development model, optimization strategy