Suggestions on Improving the Carbon Spot Market and Developing China's Carbon Futures Market

In carbon market, futures are essential products to help market participants to discover price and manage market risk. This article analyzed the futures in European Union Emissions Trading System (EU-ETS) and Regional Greenhouse Gas Initiative (RGGI) and summarized the experience of carbon futures trading. However, the spot market of China's national ETS is not mature to develop future product. Considering the weakness of spot market of China's national ETS, this article concluded pathway and policy recommendations to develop futures market of China's national ETS in three phases.