Part 7/10:
Looking ahead, the implementation of China’s ETS could influence wider regional efforts. Countries in Southeast Asia and beyond are already exploring or developing their own emissions trading mechanisms. An interconnected or regional carbon market could emerge, creating liquidity and fostering trade of carbon credits across borders.
For such a market to function effectively, robust standards for monitoring, reporting, and verification (MRV) are essential. Trust in the integrity of the system will determine its acceptance and liquidity. As demand and supply stabilize, and as trading in forward and future contracts becomes viable, carbon markets could evolve into a vital tool for achieving climate commitments—both corporate and governmental.