In February 2023, Tsinghua University published this report about how to improve carbon offsetting and address double counting of emissions mitigation, an emerging issue after China made its carbon peaking and neutrality commitments in 2020. The research was supported by Energy Foundation China.

The report analyzes the challenges of double counting of emissions reduction in existing emissions trading in China, before it puts forward policy suggestions on how to design better offsetting mechanisms to address the problem.

An in-depth analysis of the shortcomings and impacts of existing offsetting mechanisms, this report aims to provide scientific evidence for a theoretical framework that can help optimize the policy design of China’s emissions trading mechanisms, and ensure the integrity in reduction accounting, which is the foundation for China to formulate sound carbon neutrality policies.