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Introduction: The emergence of voluntary carbon markets is creating new opportunities to sustainably finance Natural Climate Solution (NCS) projects. In Australia, the federal government recently enacted the Tidal Restoration of Blue Carbon Ecosystems Methodology Determination 2022 (Tidal Reconnection Method), whereby restoration activities that reintroduce tidal flows to allow the re-establishment of coastal wetland (blue carbon) ecosystems, through the removal or modification of a tidal restriction, can be used to gain and sell Australian carbon credit units. Australia has the highest net blue carbon wealth in the world, with 5%-11% of global carbon stocks, yet there is currently a lack of large-scale feasibility assessments and supporting methodologies to identify and prioritise sites with the greatest potential for NCS project implementation to help inform investment decisions. Methods: In this study, we applied a spatial Multi-Criteria Decision Analysis (MCDA) to identify, map, and prioritise potential sites for blue carbon coastal wetland restoration in South Australia that meet criteria outlined in the Tidal Reconnection Method. This study compared information on 1) predicted flooding extent following tidal reconnection and under sea level rise (SLR; present-day, 2050 and 2,100); 2) project implementation complexity (e.g. who possesses land tenure); and 3) carbon sequestration potential through predicted area of vegetation change under the above SLR scenarios. Results: Our results identified 64 sites of interest, of which 32 received an overall "high" prioritisation score of 3 or more out of 5. This equates to approximately 21,114 ha of high priority potential blue carbon restoration sites. Discussion: The MCDA enables development of a portfolio of viable restoration projects through a rapid "desktop" prioritisation of sites of interest, which can then guide investment in further detailed cost/benefit feasibility assessments. This study demonstrates an adaptable MCDA approach to map potential NCS projects at meaningful spatial scales and in-line with carbon market-based opportunities. [ABSTRACT FROM AUTHOR]

The dual-carbon strategy is a basic national policy to ensure high-quality and sustainable development of China's economy. Scientific understanding of carbon price fluctuations aids in mitigating investment risks, fostering a steady development of the carbon market, and enhancing the domestic carbon market's pricing competence in the global market. Notably, the carbon trading prices in China exhibit significant volatility and periodic variations, underscoring the imperative to enhance a unified carbon market nationwide. This article selects Shenzhen's monthly carbon emissions trading price data from August 2013 to February 2023 to represent the national carbon market price. Based on the analysis of massive data, multivariate analysis methods such as H-P filtering method and ARCH clustering model were used to study the fluctuation patterns and cyclical characteristics of Shenzhen's carbon emissions trading prices. The results show that: The domestic carbon price has the remarkable feature of "falling in fluctuation", showing four complete cycles, with each cycle time range of 10-26 months; The peak and valley values show a downward trend of varying degrees, with the peak and valley values changing from positive to negative, and the cycle types show a steep downward trend; The carbon price yield series has ARCH effect. The research results reveal the basic laws of my country's carbon price fluctuations and provide theoretical basis and data support for improving the global pricing capability of the domestic carbon market. [ABSTRACT FROM AUTHOR]

In this paper, we select the China Carbon Market Price Index, which reflects the overall price changes in China's carbon market (CCM), and employs the TVP- VAR-BK model to examine the risk spillover effects between the carbon market and high-carbon-emission industries in China from a frequency domain viewpoint. Employing the nonparametric quantile Granger causality test, it delves further into the effects of economic policy uncertainty (EPU) in China on the degree of risk spillovers between the carbon market and high-carbon- emission industries. There are significant risk spillover effects between the carbon market and high-carbon-emission industries. During the short term, the carbon market affects the cement industry more than the electric power and steel industries. However, the carbon market is affected by the volatility of the high-carbon-emission industries over the long term. In addition, the effect of EPU on the magnitude of risk spillovers between the carbon market and high- carbon-emission industries is nonsignificant at extreme quartiles and significant at the middle quartile level, which is typically asymmetric. [ABSTRACT FROM AUTHOR]

Along with the new stage of prevention and control of the COVID-19 pandemic and the vision and goals of combatting climate change, the challenges of the transition to a green economy have become more severe. The need for green recovery of the economy, stability and security of energy production and consumption, and the coordination of low-carbon transformation and socio-economic development has become increasingly urgent. This paper proposes a new theoretical framework to study the effect of carbon emission reduction on the mutual application of the carbon market, fiscal policy and monetary policy under the non-homothetic preference of energy product consumption. By constructing an environmental dynamic stochastic general equilibrium (E-DSGE) model with residents' non-homothetic preferences, this paper finds that coordinating the carbon market and macroeconomic policies can achieve economic and environmental goals. However, the transmission paths for each are different. The carbon market influences producers' abatement efforts and costs through carbon prices. Monetary policy controls carbon emissions by adjusting interest rates, while fiscal policy controls carbon emissions by adjusting total social demand. Improving non-homothetic preferences will amplify business cycle fluctuations caused by exogenous shocks, thus assuming the role of a "financial accelerator". Further research shows that non-homothetic preferences influence the heterogeneity of different policy mixes. Finally, this paper discovers that the welfare effects, the relative size and difference of long-term and short-term effects resulting from the different policy mixes, also depend on the level of non-homothetic preferences. The intertemporal substitution mechanism due to the improvement of non-homothetic preferences endows low-carbon production with "option" characteristics. Our study reveals the role of non-homothetic preferences on the effectiveness of policy implementation. It highlights the importance of matching monetary and fiscal policies with the carbon market based on the consumption and production side. It provides ideas for policy practice to achieve the goal of "dual carbon" and promoting coordinated socio-economic development. [ABSTRACT FROM AUTHOR]

The power grid, as the hub connecting the power supply and consumption sides, plays an important role in achieving carbon neutrality in China. In emerging carbon markets, assessing the investment benefits of power-grid enterprises is essential. Thus, studying the impact of the carbon market on the investment and operation of powergrid enterprises is key to ensuring their efficient operation. Notably, few studies have examined the interaction between the carbon and electricity markets using system dynamics models, highlighting a research gap in this area. This study investigates the impact of the carbon market on the investment of power-grid enterprises using a novel evaluation system based on a system dynamics model that considers carbon-emissions from an established carbon-emission accounting model. First, an index system for benefit evaluation was constructed from six aspects: financing ability, economic benefit, reliability, social responsibility, user satisfaction, and carbon-emissions. A system dynamics model was then developed to reflect the causal feedback relationship between the impact of the carbon market on the investment and operation of power-grid enterprises. The simulation results of a provincial power-grid enterprise analyze comprehensive investment evaluation benefits over a 10-year period and the impact of carbon emissions on the investment and operation of power-grid enterprises. This study provides guidelines for the benign development of power-grid enterprises within the context of the carbon market. [ABSTRACT FROM AUTHOR]

The Paris Agreement is an important milestone in international climate policy and the associated negotiations of the United Nations Climate Summit under the United Nations Framework Convention on Climate Change (UNFCCC). Article 6 of the Paris Agreement is a supplementary mechanism—regarding carbon markets—to reduce greenhouse gases and achieve the UNFCCC's main objective of stabilizing greenhouse gas concentrations. The 2021 United Nations Climate Summit in Glasgow (COP26) played a key role in the pursuit of this goal. Via an overview of Article 6 negotiations in past COP summits and a systematic review and qualitative meta‐synthesis of the literature leading up to COP26, I identify three arguments involving Articles 6.2, 6.4, and 6.8 behind the selected literature. I substantiate these arguments based on the meta‐evaluation of the existing literature and propose a three‐stage meta‐evaluation of the arguments on Article 6 (carbon markets) of the Paris Agreement in the context of COP26 to ascertain if the negotiations were successful in leading to requisite agreements on Article 6. I conclude that future qualitative research should focus on Articles 6.4 and 6.8 of the Paris Agreement and examine the outcomes of future climate debates to see how ideas will flow through the negotiations regarding these two articles to pursue the goal of the UNFCCC under the Paris Agreement. Related Articles: Jihyung Joo, Jihyung, Jouni Paavola, and James Van Alstine. 2023. "The Divergence of South Korea's Emissions Trading Scheme (ETS) from the EU ETS: An Institutional Complementarity View." Politics & Policy 51(6): 1155–73. https://doi.org/10.1111/polp.12566. Nunes Silva, Carlos. 2012. "Policy and Evidence in a Partisan Age: The Great Disconnect—By Paul Gary Wyckoff." Politics & Policy 40(3): 541–43. https://doi.org/10.1111/j.1747‐1346.2012.00363.x. Robles, Pedro, and Daniel J. Mallinson. 2023. "Catching up with AI: Pushing toward a Cohesive Governance Framework." Politics & Policy 51(3): 355–72. https://doi.org/10.1111/polp.12529. [ABSTRACT FROM AUTHOR]

Copyright of Integrated Intelligent Energy is the property of Editorial Department of Integrated Intelligent Energy and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

China's carbon market is an important way to achieve carbon peak by 2030 and carbon neutrality by 2060. Blockchain technology can solve the problems of low trading efficiency, poor liquidity and regional heterogeneity in China's current carbon market. this paper explores the scenario of applying blockchain technology to China's carbon market. Firstly, this paper considers the allocation of carbon quota in the carbon market based on blockchain technology under policy regulation. The study found that the development of carbon trading pilots was uneven, and some pilot carbon trading volumes were low, presenting a situation of "no market price". Secondly, it describes the enhancement effect of blockchain technology on the carbon market from the perspective of technology and multiple factors. Considering only the technical factors, the enhancement process is an "inverted L" shape, while considering the superposition factors, the enhancement effect is approximately an "S" shape. Finally, based on the social learning model of major technological changes, the paper describes the process of dynamic utilization of blockchain technology by carbon trading enterprises and simulates the evolution law. The government should introduce relevant policies to guide the implementation of blockchain technology in the carbon market to strengthen the vitality of the carbon market and meet the expectation of carbon emission reduction. This paper provides theoretical support for the integration of blockchain technology into China's carbon market. [ABSTRACT FROM AUTHOR]

Abstract Accurately and efficiently estimating the carbon market risk is paramount for ensuring financial stability, promoting environmental sustainability, and facilitating informed decision‐making. Although classical risk estimation methods are extensively utilized, the implicit pre‐assumptions regarding distribution are predominantly contained and challenging to balance accuracy and computational efficiency. A quantum computing‐based carbon market risk estimation framework is proposed to address this problem with the quantum conditional generative adversarial network‐quantum amplitude estimation (QCGAN‐QAE) algorithm. Specifically, quantum conditional generative adversarial network (QCGAN) is employed to simulate the future distribution of the generated return rate, whereas quantum amplitude estimation (QAE) is employed to measure the distribution. Moreover, the quantum circuit of the QCGAN improved by reordering the data interaction layer and data simulation layer is coupled with the introduction of the quantum fully connected layer. The binary search method is incorporated into the QAE to bolster the computational efficiency. The simulation results based on the European Union Emissions Trading System reveals that the proposed framework markedly enhances the efficiency and precision of Value‐at‐Risk and Conditional Value‐at‐Risk compared to original methods.

To promote the development and application of continuous monitoring technologies for CO2 emissions from thermal power plants in China and support the establishment of a carbon emission statistics and accounting system in the country, this study analyzes the international experience in the continuous monitoring of CO2 emissions from thermal power plants using literature research, expert discussion, and technical interpretation, with a focus on the United States and the European Union. The analysis covers eight aspects: types of units applying the technology, formulation of implementation standards, measures for dealing with failures, selection of monitoring technologies, research on key technologies, support for the low-carbon development of thermal power plants, verification of monitoring reports, and evaluation of measurement accuracy. Drawing on international beneficial experience and considering the current status of continuous monitoring of CO2 emissions from thermal power plants in China, the study proposes the following suggestions: (1) formulating supporting policies and regulations while considering the characteristics of technology application and the actual situation of thermal power plants in China, (2) accelerating the improvement in technical implementation standards and specifications to enhance the guiding and supporting role of standards, (3) strengthening the statistical analysis of the measurements using existing flue gas flow meters to provide references for relevant work, (4) enhancing research on flue gas flow measurement in thermal power plants to improve the technical level of continuous monitoring of CO2 emissions, (5) promoting the application of digital technologies in the verification of monitoring reports to support closed-loop management of continuous monitoring of CO2 emissions, and (6) improving the evaluation standards system for measurement accuracy of continuous emission monitoring systems to enhance the international recognition of China’s carbon emission data.

Carbon credit is known as one of the most effective market-based tools to control the genera- tion of carbon emissions. In order to mitigate carbon intensity and enhance energy efficiency within product systems, the utilization of carbon credits emerges as a valuable tool for com- panies striving to achieve ambitious targets in reducing greenhouse gas (GHGs) emissions. This study aims to investigate the impact of employing carbon credits in contrast to traditional inventory models. To overcome these shortcomings, a two-stage inventory model to design a green supply chain in a carbon trading environment is presented in this paper. The model solves a pricing problem and determines the optimal production run time of component and the carbon credit price. The presented model is employed in a real-world case study, and the numerical results are meticulously analysed and interpreted. The results of the model showed that there exists an optimal solution or optimizer. We have presented an algorithm to compute the value of an optimal solution. After the computation of an algorithm, there was more than sufficient evidence to show the beneficial effects of Taiwan bike manufacturer’s model. The findings of sensitivity analysis also have implications for this proposed model. As an illustration, the outcomes achieved through pollution prevention can be juxtaposed with those derived from non-investment operations, considering various parameter settings. This comparison aids in identifying an opportune moment for implementing pollution prevention measures.

The reduction of carbon emissions has attracted significant global attention. This paper empirically analyzes the dynamic nonlinear linkages among carbon markets, green bonds, clean energy, and electricity markets by constructing DCC-GARCH and TVP-VAR-SV models, and places the four markets under a unified framework to analyze the volatility risk from a time-varying perspective, thereby enriching the research on China's carbon market and renewable energy sector. We found that extreme events have a significant impact on the dynamic connectivity among the four markets. The analysis of the shock impact indicates that the carbon market has a positive effect on the power market in the short and medium terms, but has a mitigating impact in the long term. Especially, when the other markets are hit, the carbon market has evident fluctuation in 2020. The green bond market has a positive influence on the carbon market, whereas the power market demonstrates adverse effects in the short and medium terms. The New Energy Index negatively impacts the power market in the short and medium terms, but is expected to have a positive effect after 2020, highlighting the growing need for renewable energy in the power system transformation. According to the findings mentioned above, we put forward appropriate recommendations.

The power sector is one of the major CO2-emitting industries in China. It is also the first key emissions control industry included in China's national carbon trading market established in 2021. Therefore, based on the data of 30 provinces and cities in China from 2015 to 2022, this study analyzes the impact of the national carbon market policy on the carbon emissions of the power industry based on the generalized Difference-in-Difference (DID) model. Based on the method of text analysis, this paper constructs the carbon market policy intensity index of each region and incorporates it into the DID model. Empirical analysis finds that the national carbon market policy can significantly inhibit the carbon emissions of the power industry. However, the heterogeneity analysis of 30 provinces and cities shows that the national carbon market policy has a significant impact on the regions that already have a carbon pilot, but not on the non-pilot regions. Therefore, this paper demonstrates the effectiveness of the national carbon market policy in the power industry emissions control, and also exposes the heterogeneity between regions, providing an important empirical basis for the inclusion of other energy-intensive industries. [ABSTRACT FROM AUTHOR]

With the development and refinement of the carbon emissions trading market, the relationship between the carbon market and the stock market has grown increasingly intertwined. This has led to a surge in research investigating the interactions between the carbon market and related sectors. This study examines the intensity and direction of spillover effects among ten industries associated with carbon emissions, spanning traditional and emerging energy sectors. Through static analysis, we find that spillover effects between industries in the carbon and stock markets are bidirectional and asymmetric. Dynamic analysis reveals that the carbon market, acting as the primary recipient of spillover effects, is notably influenced by traditional energy industries such as coal and oil, followed by photovoltaics, new energy vehicles, and others. The magnitude of these spillover effects is subject to fluctuations influenced by energy crises and events like the COVID-19 pandemic, while policy interventions can alter the overall trends in net spillover effects across various industries. [ABSTRACT FROM AUTHOR]

Carbon credit is known as one of the most effective market-based tools to control the generation of carbon emissions. In order to mitigate carbon intensity and enhance energy efficiency within product systems, the utilization of carbon credits emerges as a valuable tool for companies striving to achieve ambitious targets in reducing greenhouse gas (GHGs) emissions. This study aims to investigate the impact of employing carbon credits in contrast to traditional inventory models. To overcome these shortcomings, a two-stage inventory model to design a green supply chain in a carbon trading environment is presented in this paper. The model solves a pricing problem and determines the optimal production run time of component and the carbon credit price. The presented model is employed in a real-world case study, and the numerical results are meticulously analysed and interpreted. The results of the model showed that there exists an optimal solution or optimizer. We have presented an algorithm to compute the value of an optimal solution. After the computation of an algorithm, there was more than sufficient evidence to show the beneficial effects of Taiwan bike manufacturer's model. The findings of sensitivity analysis also have implications for this proposed model. As an illustration, the outcomes achieved through pollution prevention can be juxtaposed with those derived from non-investment operations, considering various parameter settings. This comparison aids in identifying an opportune moment for implementing pollution prevention measures. [ABSTRACT FROM AUTHOR]

Copyright of Electric Power Automation Equipment / Dianli Zidonghua Shebei is the property of Electric Power Automation Equipment Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The growing popularity of the idea of carbon budgets has contributed to a reshaping of climate policy goals in terms of carbon neutrality (net zero emissions) instead of strict emissions reductions. As a consequence, new legitimacy has been given to debatable efforts to use negative emissions for offsetting purposes. In this respect, sequestration by agricultural soils is now presented as a promising way to offset fossil carbon emissions. Adopting a historical perspective, this article studies the way soil sciences and economics amplified the political promise of agricultural sequestration, despite enduring concerns about its non-permanence and reversibility. First, it shows how, from the 1980s, the soil sciences conveyed a mechanical representation of soil as a carbon sink, and on this basis worked to assess its sequestration potential. Second, it shows how agricultural economics helped to translate this physical potential into economic opportunity, extolling its low cost relative to decarbonisation options. Both tendencies contributed to the institutionalisation of a new equivalence between the reduction of CO2 emissions and organic carbon sequestration through the enlargement of the international system of carbon accounting, and both encouraged the development of soil-based offsets, at the cost of environmental integrity. [ABSTRACT FROM AUTHOR]

Whether the carbon market can promote green technology innovation is a controversial topic because of an incomplete understanding of the mechanism and inconsistent datasets. This study first comprehensively explores the theoretical mechanism of the carbon market on green technology innovation from four aspects: the compensation effect, cost control motivation, crowding-out effect, and spillover effect. A sample of 209 cities in China is employed to empirically test the impact of China's pilot carbon market on green technology innovation and its regional and industry heterogeneity using quasi-natural experiments. We found that China's pilot carbon market has significantly promoted green technology innovation at the city level, especially in provincial capital cities, achieving a maximum effect two years after the shock. However, there is no significant spillover effect on the surrounding non-pilot cities, and Chongqing has realized the suppression of green technology innovation under the domination of the crowding-out effect. At the industry level, the pilot carbon market significantly promotes green technology innovation in the transportation, construction, chemical, and power industries but exhibits crowding-out effects in the steel industry. Finally, we propose policy implications for maintaining reasonable and stable carbon prices to stimulate compensation effects, scientifically determining the order of industry inclusion to avoid crowding-out effects, and accelerating inter-regional supply chains and technological cooperation to release spillover effects. It is recommended to scientifically determine a reasonable carbon price range and introduce institutions, individuals, and other trading entities to improve the liquidity of the carbon market and the effectiveness of carbon prices. Considering the high cost triggered by the complex processes of the steel industry in developing countries, its inclusion may inhibit green technology innovation; thus, it is necessary to be cautious about including the steel industry in the carbon market. To build a carbon market in developing countries, the order of industry inclusion must be determined based on scientific calculations of the costs of green technology innovation in the industry. Avoid using self-declaration for carbon quota allocation and focus on improving national basic innovation capabilities to ensure the supply of green technology innovation. [ABSTRACT FROM AUTHOR]

In the context of emissions, carbon dioxide constitutes a predominant portion of greenhouse gases (GHGs), leading to the use of the term "carbon" interchangeably with these gases in climate-related discussions. The carbon market has emerged as a pivotal mechanism for emission regulation, allowing industries that struggle to meet emission reduction targets to acquire credits from those who have successfully curbed their emissions below stipulated levels. Thermoeconomics serves as a tool for analyzing multiproduct systems prevalent in diverse sectors, including sugarcane and alcohol mills, paper and pulp industries, steel mills, and cogeneration plants. These systems necessitate frameworks for equitable cost/emission allocation. This study is motivated by the need to expand the scope of thermoeconomic modeling to encompass expenses or revenues linked with the carbon market. By utilizing a cogeneration system as a representative case, this research aims to demonstrate how such modeling can facilitate the allocation of carbon market costs to final products. Moreover, it underscores the adaptability of this approach for internalizing other pertinent costs, encompassing expenses associated with environmental control devices, licenses, and permits. Although certain exergy disaggregation models depict an environmental component within diagrams, which is integral for addressing environmental burdens, even models without explicit environmental devices can effectively internalize carbon credits and allocate them to final products. The integration of carbon credits within thermoeconomic modeling introduces the capability to assess both the financial and environmental implications of emissions. This integration further incentivizes the reduction in GHGs and supports optimization endeavors concerning system design and operation. In summary, this study delves into the incorporation of carbon market dynamics into thermoeconomic modeling. It demonstrates the potential to allocate carbon-related costs, facilitates comprehensive cost analysis, encourages emission reduction, and provides a platform for enhancing system efficiency across industrial sectors. [ABSTRACT FROM AUTHOR]

Extreme events have further complicated the already closely related carbon‐energy system, but little research has focused on the extreme spillovers between energy and carbon markets. This paper combines quantile vector autoregression with the extended joint connectedness approach to introduce a new quantile extended joint connectedness approach to study the extreme spillover between the carbon market, fossil energy and clean energy markets, using daily data spanning from October 15, 2010 to February 25, 2022. The results show that markets are more closely linked at extreme risk, and the spillover is time‐varying and cyclical. The impact of extreme events will strengthen the links between markets. Further research shows different clean energy have heterogeneous spillovers on the carbon market, especially when impacted by extreme events. Finally, the hedging and portfolio effectiveness of clean energy to carbon market also show the existence of heterogeneity, and clean energy can diversify the portfolio of carbon market. [ABSTRACT FROM AUTHOR]

This article provides an overview of the pivotal role played by manure in animal agriculture and the circular economy. We delve into technological advancements and policy frameworks that harness manure as a valuable resource for generating both fertilizer and energy. Additionally, we explore future considerations for integrating manure into ecosystem marketplace, emphasizing its potential for environmental sustainability. The discussion emphasizes the critical need for robust interdisciplinary collaboration involving researchers, policymakers, outreach specialists, and stakeholders throughout the value chain. Such collaborative efforts are indispensable for integrating manure into the circular economy context, ultimately seeking to enhance the overall sustainability of agriculture.

While urban trees provides significant ecosystem services, the impact of increasing urbanization and population on their carbon sequestration potential remains relatively underexplored in interior sprawling cities, highlighting a critical research gap amid growing urban environmental challenges. Although existing studies suggest a strongly correlation between urban forest cover and carbon sequestration, this study aims to investigate how the urban demography factors influence land cover and carbon sequestration across cities with low, medium, and high population densities. Using the i-Tree Canopy tool, we sampled 18,814 random points to estimate city land cover and carbon sequestration in Arkansas, interior state of the US. Results from the principal component analysis revealed that 74% of the variation in a city's land cover among population density classes is attributed to tree and soil cover percentages. The mean annual (1.40 ± 0.08 T ha-1) and total carbon sequestration rates (35.30 ± 5.57 T ha-1) were significantly higher in the areas with low population density due to a higher average tree cover percentage (46%). Carbon sequestration rate was negatively associated with land cover types such as impervious surfaces like buildings (r = -0.44), roads (r = -0.28), grass cover (r = -0.46), and impervious other (r = -0.53). The log-linear model with scaled variables suggested that factors such as city's size and tree cover has positive influence urban trees' annual and total carbon sequestration, while spatial distribution and per capita income negatively affect these ecosystem befits in growing cities, regardless of population density. Travel time within city may have negative impact, while decadal population change may positively impact on carbon sequestration alongside management effort. Valuing this potential urban forest carbon sequestration for emerging carbon market could provide monetary benefits to the urban communities, city managers, and policymakers, enabling the development of effective urban forest management strategies in the context of urban climate change.

IntroductionThe emergence of voluntary carbon markets is creating new opportunities to sustainably finance Natural Climate Solution (NCS) projects. In Australia, the federal government recently enacted the Tidal Restoration of Blue Carbon Ecosystems Methodology Determination 2022 (Tidal Reconnection Method), whereby restoration activities that reintroduce tidal flows to allow the re-establishment of coastal wetland (blue carbon) ecosystems, through the removal or modification of a tidal restriction, can be used to gain and sell Australian carbon credit units. Australia has the highest net blue carbon wealth in the world, with 5%–11% of global carbon stocks, yet there is currently a lack of large-scale feasibility assessments and supporting methodologies to identify and prioritise sites with the greatest potential for NCS project implementation to help inform investment decisions.MethodsIn this study, we applied a spatial Multi-Criteria Decision Analysis (MCDA) to identify, map, and prioritise potential sites for blue carbon coastal wetland restoration in South Australia that meet criteria outlined in the Tidal Reconnection Method. This study compared information on 1) predicted flooding extent following tidal reconnection and under sea level rise (SLR; present-day, 2050 and 2,100); 2) project implementation complexity (e.g. who possesses land tenure); and 3) carbon sequestration potential through predicted area of vegetation change under the above SLR scenarios. ResultsOur results identified 64 sites of interest, of which 32 received an overall “high” prioritisation score of 3 or more out of 5. This equates to approximately 21,114 ha of high priority potential blue carbon restoration sites.DiscussionThe MCDA enables development of a portfolio of viable restoration projects through a rapid “desktop” prioritisation of sites of interest, which can then guide investment in further detailed cost/benefit feasibility assessments. This study demonstrates an adaptable MCDA approach to map potential NCS projects at meaningful spatial scales and in-line with carbon market-based opportunities.

Abstract The carbon market plays a critical role in promoting the transition toward renewable energy sources and reducing greenhouse gas emissions in the electricity generation and transmission. Extant research has overlooked the dynamic bilateral causality that exists between electricity and carbon markets. Moreover, these studies have frequently treated the macroeconomic effect as exogenous. To bridge this research gap, this paper presents a holistic modeling framework that comprehensively captures the intertwined nature of electricity and carbon markets and their concomitant interactions with the overarching economy. The suggested modeling framework is an integration of three principal modules, namely, a carbon market, an electricity market, and economic system. This synergistic blend provides an exhaustive understanding of the entire market operation cycle. It offers detailed clearance rules, and most importantly, it adopts a macroeconomic systematic modeling approach for evaluating the impact emanating from the interconnected electricity and carbon markets. To illustrate the practicality and effectiveness of the proposed approach, a case study anchored on empirical data sourced from the electricity and carbon markets in China is conducted. The empirical findings underscore the fact that incorporating a green certificate market into the modeling framework can precipitate a reduction in greenhouse gas emissions. Additionally, the results indicate that expanding the scale of the green certificate market from 1.9% in 2021 to 33% by 2023 will increase the generation of green electricity by 10%.

This paper firstly puts forward to explore the multi-scale, nonlinear quantile interactions between investor attention and the carbon market from January 2009 to December 2022. To achieve this goal, this study employs the adjusted CEEMDAN (complete ensemble empirical mode decomposition with adaptive noise) method, nonparametric quantile causality test, and quantile regression approach. The results illustrate that the Granger causality between investor attention and the carbon market is bidirectional and asymmetric across all scales. The explanatory power is stronger under extreme market conditions than in the case of normal markets at the short- and medium-term scales, whereas it is greater under normal markets in the long run. Furthermore, the marginal effect of investor attention on the carbon market is asymmetric across the whole quantiles. These evidences provide invaluable guidance for regulators to monitor risks in the carbon market and for investors to hedge risks aimed at different time horizons.

Photovoltaic (PV) and battery energy storage systems (BESSs) are key components in the energy market and crucial contributors to carbon emission reduction targets. These systems can not only provide energy but can also generate considerable revenue by providing frequency regulation services and participating in carbon trading. This study proposes a bidding strategy for PV and BESSs operating in joint energy and frequency regulation markets, with a specific focus on carbon reduction benefits. A two-stage bidding framework that optimizes the profit of PV and BESSs is presented. In the first stage, the day-ahead energy market takes into account potential real-time forecast deviations. In the second stage, the real-time balancing market uses a rolling optimization method to account for multiple uncertainties. Notably, a real-time frequency regulation control method is proposed for the participation of PV and BESSs in automatic generation control (AGC). This is particularly relevant given the uncertainty of grid frequency fluctuations in the optimization model of the real-time balancing market. This control method dynamically assigns the frequency regulation amount undertaken by the PV and BESSs according to the control interval in which the area control error (ACE) occurs. The case study results demonstrate that the proposed bidding strategy not only enables the PV and BESSs to effectively participate in the grid frequency regulation response but also yields considerable carbon emission reduction benefits and effectively improves the system operation economy.

AbstractThe carbon market has gained widespread consensus as an important means to address the climate change. The legal system of the carbon market is the cornerstone of the stable operation, which currently relies on a top-down model promoted by the government. A question worth considering is, as the carbon trading is based on the market mechanism that depends on the autonomy of will, what kind of role does private law play in the legal system of the carbon market? This study sorts out various risks of the carbon market and point out that they are mainly originated from information asymmetry and the principal-agent problem. These two reasons of market risks indicate the imbalance of rights and obligations among market participants. Precisely, private law is a significant way to achieve equal and fair transactions between private entities. This paper conducts empirical analysis on China’s carbon market and finds that the carbon brokerage is based on the principal-agent relationship, the carbon asset management is belonging to the trust relationship, and the information consulting is according to the contract of mandate. The conclusion shows that information asymmetry and the principal-agent problem can be prevented and mitigated by the rights of intervention and option, fiduciary duty, and fault liability. Private law can rebalance rights and obligations between private entities of the carbon market. In addition, there are also limitations of private law, so the recommendation is to make a diversified mechanism of the legal governance to achieve a robust development of the carbon market.

Evaluating the effects of China's carbon emission trading scheme (ETS) is crucial for the coordinated development of Chinese cities. Therefore, based on the panel data of 242 cities in China from 2008 to 2019, this paper uses the multi-period difference-in-difference (DID) model to comprehensively evaluate the impact of carbon market on the coordinated development of cities from the perspectives of carbon market policy and carbon market efficiency, and then analyzes the mechanism and heterogeneity of the effect of carbon market efficiency. The results show that both carbon market policy and carbon market efficiency can promote the coordinated development of cities. Science and education expenditure plays a significant intermediary role in the impact of carbon market efficiency on the coordinated development of cities. The heterogeneity test finds that the stricter the performance penalty system, the higher the level of urban coordinated development, and the stronger the effect of carbon market efficiency. The findings of this paper provide policy recommendations for further improving the construction of China's pilot and national ETS and enhancing the coordinated development of Chinese cities. [ABSTRACT FROM AUTHOR]

Deepening the construction of China's national carbon market promotes the adequate pass-through of carbon costs of power generation companies to the downstream demand side, which is an essential policy focus for accelerating the comprehensive green and low-carbon transition of the economy and society. A reasonable carbon price pass-through rate can not only stimulate enterprises to reduce emissions but also convey carbon emission costs to consumers by raising electricity prices, guiding them to save electricity, and thereby promoting the carbon reduction effect in a broader range. This study, from a micro-perspective of power generation companies'operational behavior, incorporates carbon emission costs into the investment decision-making scope of power generation companies. Taking into full account the heterogeneity factors of enterprises such as emission intensity, risk preference, and willingness to adopt low-carbon technologies, an agent-based carbon cost pass-through rate evaluation model was constructed. By simulating the multistrategy selection behavior of power generation companies facing limited information, this study examined the dynamic trend of the carbon cost pass-through rate of power generation companies in China's national carbon market from 2021 to 2030 and analyzed the impact of different market mechanism designs and low-carbon technologies on the carbon cost pass-through rate. The study found that: ① The carbon cost pass-through rate of power generation companies presented a 'slow growth-rapid rise-maintaining a high position' change feature. ② Initial carbon price, market regulation coefficient, and auction proportion were all positively related to the carbon cost pass-through rate of power generation companies. Specifically, as the initial carbon price increased, the carbon cost pass-through rate became higher only in the short term, and the effect would gradually weaken in the medium and long term; the market regulation coefficient had a threshold effect on promoting the carbon cost pass-through rate; and the increase in auction proportion would increase the marginal emission cost of enterprises, leading to an increase in the carbon cost pass-through rate. ③ Low-carbon technology could alleviate the operational cost pressure of power generation companies under carbon emission constraints, effectively slowing the rise of the carbon cost pass-through rate. This study not only provides theoretical support for exploring the carbon cost pass-through problem of power generation companies but also offers practical guidelines for perfecting the mechanism design of China's national carbon market. [ABSTRACT FROM AUTHOR]

Information tools can be applied to the construction of the carbon market by playing a decentralized and intermediary role and can contribute to smooth and orderly carbon trading by ensuring full access to carbon emission information, facilitating market regulation, promoting stable and positive carbon prices, and fostering seamless public participation. However, in practical applications, information tools in different fields of the carbon market will produce different disability forms: ① Data defects, data falsification, and illegal operation and maintenance may lead to distortion of carbon emission monitoring data. ② There may be security risks in the process of deep cleaning, de-noising, and checking the original information on the carbon information data platform. ③ Algorithmic infringement caused by unilateral rule shaping, potential failure, and bias is an important source of injustice in the process of carbon trading. ④ The data silo of carbon information sharing tends to lead to poor administrative supervision and public participation. The practical obstruction of information tools in the construction of enabling carbon markets reflects the concept and institutional dilemma that information tools cannot be freely applied in the modernization of the environmental governance system. In terms of governance philosophy, in-process and post-event regulations are difficult to meet the requirements of information tool disability risk regulation. In terms of institutional supplies, the pilot first carbon market construction strategy tends to lead to different institutional supplies in different regions, so it is necessary to strengthen the top-level design of central legislation. The legislative concepts of risk prevention and management as well as behavior promotion and protection can overcome the whole and dynamic nature of the disability forms of information tools and make risk makers have stable expectations of the consequences of their behavior. The central-local cooperative legislation system can highlight the comprehensive and strategic nature of the 'dual carbon' goals, and provide a more systematic, comprehensive, and effective legal supply for the construction of the carbon market. In terms of system design, it is also necessary to guarantee the overall process of the carbon market construction enabled by information tools from four aspects: improving the quality of monitoring data with information commitment, improving the platform security management system combining administrative supervision and enterprise self-discipline, clarifying the accountability and entity responsibility of algorithm infringement, and expanding the paths of carbon information flow and sharing. [ABSTRACT FROM AUTHOR]

In the context of the development of the Low-Carbon Economy, the Carbon Market is an important way to guide enterprises to actively participate in environmental governance and promote enterprises to achieve green transformation. In this study, the first group of electric power industry companies participating in the carbon market on July 16, 2021, was selected as the treatment group. And the difference-in-differences (DID) model was used to investigate the influence of the Carbon Market on corporate financing behavior. This study finds that Carbon Market can significantly promote the level of corporate financing. This is achieved through enhancing credit financing and long-term financing. The heterogeneity analysis shows that the promotion impact is more obvious in state-owned enterprises, start-ups, and smaller enterprises. Additionally, we discuss the above impacts in terms of constraints and demands. In terms of constraints, the increase of external financing difficulty and the squeeze of own financing space will inhibit the promotion of the Carbon Market on the financing level. In terms of demand, corporate investment demand and investors' attention will enhance the positive impact of the Carbon Market on the financing level. This paper expands the relevant research on the Carbon Market. It reveals the mechanism and effective path of corporate financing behavior in the Low-Carbon Economy. In addition, the paper provides new evidence for the improvement and development of the Carbon Market policies. [ABSTRACT FROM AUTHOR]

The non-performing assets in the carbon market represent the negative consequences of the loss of carbon credit and the failure of trading expectations. There are three manifestations: basic non-performing assets, direct non-performing assets, and advanced non-performing assets. They have characteristics such as the virtual value of the deficit and the complexity of the causes, corresponding to the dual harm of interfering with market transactions and hindering low-carbon emissions reduction. Based on this, this article adopted methods such as normative analysis and case studies to comprehensively analyze the qualitative and legal constraints of non-performing assets in the carbon market and attempted to summarize the conceptual essence and legal reform measures of regulating non-performing assets in the carbon market. Through systematic research, this study found that, in terms of the qualitative analysis of non-performing carbon assets, the corresponding laws lacked the awareness to identify the corresponding non-performing carbon assets and did not have the practice to define their content and scope. In terms of preventing non-performing carbon assets, existing legal arrangements made it difficult to overcome negative factors such as improper business operations, a poor market environment, false promises, and market speculation that could lead to non-performing assets. In terms of the disposal of non-performing carbon assets, current laws had regulatory gaps in the fields of disposal subjects, disposal content, disposal procedures, and disposal remedies, and the only related attempts failed to conform to the economic laws of non-performing asset digestion in the carbon market. Therefore, reformers need to focus on the logical context of the formation and elimination of non-performing carbon assets. At the conceptual level, firstly, a transparent competition concept should be advocated to eliminate the injustice caused by information asymmetry as much as possible. Secondly, it is necessary to break the prisoner's dilemma of the game of interests; reformers need to fully boost confidence in maintaining the operation of the carbon market, maintain the smooth flow of information, change the preset total benefits of carbon emission reduction transactions, and guide enterprises to actively participate in carbon market activities. Finally, reformers should try their best to narrow the interest gap in fulfilling commitments and avoid the formation of a value foam. At the practical level, firstly, the attributes, content, and impact of non-performing assets in the carbon market should be clearly defined in rules and practices. Secondly, a comprehensive regulatory system should be established to prevent the accumulation of non-performing carbon assets. Finally, an integrated approach is needed to address the disposal of non-performing assets in the carbon market. [ABSTRACT FROM AUTHOR]

Carbon market construction is a crucial tool in meeting sustainable development goals (SDGs). Based on data from prefecture-level cities in Fujian Province, China, between 2011 and 2020, the SBM model is employed to determine the carbon emission efficiency for each city. Additionally, the event analysis method is deployed to evaluate the influence of the carbon market construction on carbon emission efficiency in Fujian Province, and project carbon emission efficiencies for different scenarios. The findings reveal that: (1) The construction of the carbon market has led to an improvement in carbon emission efficiency in Fujian Province, the duration of this effect needs to be strengthened. (2) No significant difference has been observed in carbon emission efficiency between coastal and inland cities due to the carbon market construction. It is feasible to investigate the formation of a carbon market with distinct local features, ultimately achieving SDGs. [ABSTRACT FROM AUTHOR]

This paper analyzes the jumping behavior and factors influencing volatility in China’s five carbon pilot markets. We confirm the presence of a volatility clustering effect, but find no evidence of a leverage effect. By employing the autoregressive jump intensity model proposed by Chan and Maheu (J Bus Econ Stat 20(3):377–389, 2002. 10.1198/073500102288618513), we observe prevalent price jumps in China’s carbon market, with the intensity of these jumps varying over time. After removing outliers, our model demonstrates robustness in the Guangdong, Beijing, and Hubei carbon markets. Assessing jump intensities around 2019 reaffirms the time-varying nature of jump intensity. As a particular case with larger price fluctuations, the carbon market in Shenzhen leans toward the general GARCH model. Additionally, we conduct a preliminary examination on the factors influencing volatility in China’s carbon market using a revised EGARCH model. Five exogenous variables are considered: crude oil price, stock index, commodity futures index, national economic policy uncertainty, and local carbon policy uncertainty. The outcomes suggest limited impacts of these fundamental factors on carbon prices, highlighting the significance of economic policy uncertainty in shaping the volatility of China’s carbon market. Finally, this paper proposes valuable policy insights and investment recommendations based on the research findings. [ABSTRACT FROM AUTHOR]

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Carbon trading markets are crucial policy instruments in carbon emission reduction and carbon neutrality. Yet, China's pilot programs encounter diverse operational modes and environmental factors that might impact their effectiveness. This study uses panel data from 30 provinces (2000–2019) in China and the regression control method to evaluate and analyze the heterogeneous effects of carbon trading pilots (CTPs) on emission reduction. Results reveal three types of CTP effects which are as follows: reducing both total carbon emissions (TCEs) and carbon intensity (CI) as noticed in Shanghai; decreasing CI while increasing TCE as seen in Beijing, Tianjin, Guangdong, and Hubei; and raising both TCE and CI as observed in Chongqing and Fujian. Significantly, market mechanisms in carbon pricing and state intervention, including of state-owned enterprises, play notable roles in these effects. Furthermore, CTP policies display both intensity reduction and energy rebound effects; the direction of carbon emission reduction relies on the balance between these effects. The findings offer empirical support to enhance carbon market effectiveness and provide valuable insights for regions in China and globally in order to tailor policies based on their specific conditions. [ABSTRACT FROM AUTHOR]

Conservation practices used on agricultural cropland can provide important ecosystem services. The United States relies largely on voluntary programs to incentivize adoption of conservation practices, but the success of these efforts relies on good program design. We use a choice experiment to evaluate farmers' willingness to adopt more intensive in‐field conservation practices (continuous no‐till, conservation crop rotation, cover crops, and variable rate application of inputs) using a nonlinear extended expected utility framework that incorporates risk under a conservation contract. We contribute to the literature by providing insights regarding producers' preference for incentive payment mechanism (federal program or carbon market) and the incentive payment needed to induce additionality and practice continuity. We find that although an additional payment might be needed to promote practice continuity among farmers who have previously adopted cover crops, in the case of continuous no‐till, adopters might be willing to forgo additional payment to continue benefiting from the use of this practice. Our results also revealed producers prefer conservation contracts accruing higher off‐farm environmental benefits and federally administered over carbon market programs. This is an important result given an increased public interest in climate change and new proposed carbon mitigation policies and private carbon market initiatives. [ABSTRACT FROM AUTHOR]

Energy production and consumption is the primary source of global carbon emissions. In order to achieve the goal of Intended Nationally Determined Contributions (INDCs) in the Paris Agreement, countries around the world have set off an upsurge of energy transition. The EU has ambitious INDCs. The Energy crisis has made it accelerate the energy transition, thus promoting the development of its circular economy. However, the EU focuses on carbon leakage during this process. To address this issue and maintain the competitiveness of EU industries during the transition, the EU proposed the Carbon Border Adjustment Mechanism (CBAM). The EU proposed the background and development process of the CBAM, and organized the core content of the tripartite plan and final bill of the European Commission, European Parliament, and European Council. What's more, the framework system of the CBAM is clarified, and further analysis is conducted on the future development of CBAM of the EU based on various factors. In response to the new development of the CBAM, it is suggested that developing countries should adhere to the principle of common but differentiated responsibilities on the international front and attempt to build and improve a carbon market system to partially offset carbon tariffs. Finally, we should strengthen the research on the response plan of the EU CBAM and establish an effective communication mechanism with the EU, in order to better cope with the impact of the CBAM on the trade of developing countries in the future.

Carbon capture utilization and storage for enhanced oil recovery (CCUS-EOR) is considered a promising solution to meet future global energy needs while significantly reducing carbon dioxide emissions. However, the future growth of CCUS-EOR is uncertain due to the global economic recession and low oil prices. This research analyzes the impact of uncertain oil and carbon market prices on the economic value of a CCUS-EOR project which contributes to appropriate investment and future policy decisions. To explore the potential trade-offs between available carbon dioxide (CO2) quantities for trading or injection for enhanced oil recovery, the market's trading mechanism is analyzed by predicting future oil and carbon prices. The forecasted market prices are then used in an optimization model to estimate the optimal cumulative cash flow from implementing a proposed CCUS-EOR project to capture CO2 from the Hartha power plant located in the southern Basra Province of Iraq, considering three different oil fields of Rumaila, Nassriya, and Noor. The results revealed that the profitability of the proposed CCUS-EOR project is affected by both oil and carbon market prices, and a higher carbon price is needed to compensate for the financial setbacks, resulting from reduced oil prices. The research also features the strategic decision-making of oil fields across different sizes in response to various price scenarios. The medium-sized fields consistently prioritize carbon injection for enhanced oil recovery (EOR) over market trading. In contrast, small and giant fields adapt their approach based on the prevailing market price dynamics.

At present, an increasing number of countries and regions, including China, are adopting electricity and carbon markets to optimize the resource allocation of the electricity power industry. To mitigate the impacts of these complex market conditions, more and more power generation enterprises adopt hybrid production mode, generating electricity from thermal and new energy units simultaneously. This research introduces the decision process of hybrid power generation enterprises under the abovementioned trading conditions, and provide the optimal production decisions of enterprises with different market positions. Besides, the consequences of collusion behaviors among power generation enterprises and governmental policy changes are also measured based on the description to the equilibrium state of electricity and carbon markets. Numerical experiment results confirm the correctness of the production decision model and reveal the following facts: (1) Carbon market effectively reduces carbon emissions and raises the new energy power generation share, but it cuts the electricity supply and drives up the electricity clearing price. (2) The combined effects of electricity and carbon markets are able to mitigate the impacts of policy changes on market equilibrium. Power generation enterprises first internally cushion these impacts by adjusting the generation structure, and then absorb the residual impacts by adjusting the total power generation. (3) The collusion behaviors among power generation enterprises can destroy the electricity and carbon markets largely. They increase the CO2 emissions by 187.94%, cutting the electricity supply by 25.30%, and drive up the electricity clearing price by 1.37%.

The study of carbon economics theory and its evolutionary laws in the context of carbon peaking and carbon neutrality is crucial for advancing global carbon emission reduction efforts and understanding the interaction between carbon markets and complex socioeconomic systems. Carbon markets play a significant role in reducing greenhouse gas emissions through the implementation of a theoretical carbon trading mechanism. This paper proposes a theoretical framework based on the concepts of “externality” and public goods theory, focusing on Pigouvian tax, Coase theorem, and the distribution of carbon emission rights through quotas. It also explores the underlying economic principle of the “green premium”. Carbon financing is expected to support future advancements in carbon-neutral technologies. Therefore, this paper summarizes the theory and examines the relationship between carbon trading and carbon finance markets. The mechanism of the carbon market operates based on supply and demand dynamics, and now the market is witnessing gradual expansion in which other evolutionary laws also play parts, such as carbon price fluctuations,improvements to the regulatory system, and the diversification of market participants. The main instruments in the carbon market include carbon taxes, trading, and offsets, with governments, businesses, and individuals playing different roles. This paper provides a systematic analysis of theoretical innovations and practical achievements in carbon market economics, serving as a valuable reference for strategic decision-making and technological innovation in the pursuit of carbon peaking and neutrality goals.

Carbon markets have been established in many countries and regions with the goal of promoting global carbon neutrality. The position of power producers as the dominant carbon emitters necessitates that they engage in both electricity and carbon markets. However, most studies have considered only short-term electricity markets and unrealistically static carbon markets, and the speculative behavior of power producers in the carbon market remains poorly considered. The present study addresses these issues by proposing an optimized joint decision model based on information gap decision theory to facilitate the participation of power producers in annual and monthly electricity markets, and monthly carbon markets, where uncertainties in the prices of electricity and carbon quotas, and the speculative behavior of power producers in the carbon market are explicitly considered to ensure that the revenues of market participants do not fall below a predetermined minimum acceptable value. The results of simulations based on the rules and actual market data obtained for electricity and carbon markets in a specific province of China demonstrate that the proposed model provides power producers with trading solutions to meet different expected revenue targets, and thereby assists them as much as possible in counteracting the risks to profit associated with fluctuations in electricity and carbon market prices.