At the recently concluded National People's Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC) (also known as the Two Sessions), topics on the goals of carbon peaking and carbon neutrality garnered significant attention. The Government Work Report emphasized the detailed implementation of key tasks for the carbon peaking and carbon neutrality objectives, proposing to "actively and prudently advance carbon peaking and carbon neutrality... accelerate the establishment of a dual-control system for carbon emissions, and expand the sector coverage of the national carbon emissions trading market." On the journey to achieve the goals of carbon peaking and carbon neutrality, the development of the carbon market is becoming a key driver for promoting high-quality sustainable development and facilitating the green transformation of enterprises.

Recently, Du Jiayue, a Ph.D. Student at the SME, CUHK-Shenzhen, in collaboration with Dr. Wen Huiyu from Guangdong University of Technology, Professor Gao Haoyu from Renmin University of China, and Professor Li Xinming from Nankai University, published their research titled Carbon Emissions Trading Regulation and ESG Performance: Evidence from Carbon Emissions Trading Pilots in China. From the perspective of ESG performance of companies, the study reveals how market-based environmental regulations, represented by carbon emissions trading, drive sustainable development. It provides valuable policy insights for the orderly advancement of the goals of carbon peaking and carbon neutrality under market-oriented mechanisms. The research has been published in the Journal of Financial Research.

About the author

Du Jiayue

MPhil-PhD in Finance

SME, CUHK-Shenzhen

Co-authors

Wen Huiyu

Guangdong University of Technology

Gao Haoyu

Renmin University of China

Li Xinming

Nankai University