The extension of continuous carbon emission monitoring system in China’s thermal power plants under the carbon market

China is facing severe climate pollution, thus the CO2 emissions of thermal power plants which consume a lot of fossil energy, need to be strictly monitored. At the same time, the thermal power plants and the government will face brand new environment, where the exactly appropriate monitoring approach of CO2 emission remains ambiguous. This study aims to distinguish monitoring approaches between Continuous Emission Monitoring System (CEMS) and factor-based approach on the basis of the operation features of China’s thermal power plants, analyzing the extension of CEMS. We review the major reducing greenhouse gas initiative in China—carbon market, and different emission monitoring approaches at first. We present the prospects of extension in CEMS’s technical features by analyzing an example of two generations using coal and gas, respectively, finding that CEMS is more accurate and dynamic. This study also presents the challenges by analyzing the refinement of factor-based monitoring approach. However, In contrast to many previous studies, we consider different influence in prospect and challenge from the market itself, the application experience and equipment installation basis. We finally draw an important conclusion that the factor-based monitoring approach is more suitable for China’s thermal power plants currently, but CEMS is more promising.