The first monthly meeting of Joint Research 2: research on improvement of rules on carbon market oversight and management under the Project was held online on 18th August 2023. The designated Chinese and European experts from National Center for Climate Change Strategy and International Cooperation (NCSC), Shanghai Environment and Energy Exchange, Ecologic Institute and Tsinghua University joined the meeting.

The working group will focus on two key research areas: improving market activity and addressing price governance issues. The working group will study the operation of the EU ETS and other regional carbon markets, such as South Korea’s ETS, and then conduct comparative research on different markets to develop a preliminary indicator system. This indicator system can help identify areas for improvement in market activity and price governance and suggest policy measures to address them. This comparative approach can provide policy recommendations for the challenges currently faced in China’s national carbon market construction.

The experts will study both China’s national ETS and the EU ETS, summarizing regulatory measures and trading activities, especially considering the context of the EU's experience in market performance. The European and Chinese experts will collaborate to finalize the discussion on functions and standards for a successful carbon market operation.