REVIEW PAPER
Research on the Development Status
and Key Issues of Green Electricity-Carbon
Market Coupling in China
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1
State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing, 100038, China
2
School of Economics and Management, China University of Geosciences Beijing, 100083, Beijing, China
Submission date: 2024-08-16
Final revision date: 2024-10-30
Acceptance date: 2025-03-30
Online publication date: 2025-05-23
Corresponding author
Yan Li
School of Economics and Management, China University of Geosciences Beijing, 100083, Beijing, China
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ABSTRACT
To confront the urgent challenges of global climate change, achieving dual carbon goals
is now central to China’s economic and social development. In this context, integrating the electricity
and carbon markets is essential for promoting the green transformation of the energy system
and accelerating the transition to a low-carbon economy. This study examines the integration between
the green electricity market, green electricity certificate (GEC) market, and carbon market. It provides
an in-depth analysis of current coupling policies and practices, identifying issues like inefficient
price transmission and ineffective integration of environmental rights products. The study proposes
three recommendations for market coupling: improving price transmission mechanisms, enhancing
the integration of environmental rights products, and promoting international mutual recognition of
green electricity consumption. These recommendations aim to promote the coordinated development of
the green electricity and carbon markets, advancing the construction of a new electricity system.