The 2026 Sustainable Global Leaders Conference and the Second Green Industry and Sustainable Consumption Expo were held from October 20 to 22 at the Huangpu World Expo Park in Shanghai. Stefan Liller, Resident Representative of the United Nations Development Programme in China, delivered remarks at the event.
Stefan Liller stated that China's dual carbon goals have pointed the way for corporate investment. The national carbon market now covers four major industries — power, steel, cement, and aluminum smelting — which together account for more than 65% of the nation's carbon dioxide emissions. China's Certified Emission Reduction (CCER) carbon credit market has opened financing channels for sectors including offshore wind power and afforestation. China's progress in this area is remarkable, yet there remains room for improvement.
Since the national carbon market was launched in 2021, domestic carbon allowance prices have doubled, currently averaging around 84 yuan per ton, and there is still potential to further raise ambition. Objective conditions differ across markets, but continuously expanding the scale of China's carbon market can further incentivize enterprises to reduce emissions and invest in clean technologies.
Stefan Liller emphasized that sustainable investment cannot be separated from market integrity. Capital providers need reliable data, carbon credit buyers need independently verified emission reduction outcomes, the market needs a transparent transaction tracking system to prevent double counting, and enterprises should disclose their emission reduction results and explain how carbon credits complement their own emission reduction actions. The United Nations Development Programme has launched the "Global High-Integrity Carbon Market Initiative" to solidify the market foundation in three aspects: strengthening accounting, setting safeguard measures, and promoting fair sharing of benefits. The accompanying toolkit not only measures and verifies emission reductions but also assesses the broader environmental and social impacts of projects.
Taking forest protection projects as an example, in addition to measuring carbon stocks, protecting biodiversity, respecting land tenure, and ensuring local communities' right to participate in decision-making and share in benefits are equally important. He noted that during the industrial transition process, workers need access to new skills training, communities need sustainable livelihood guarantees, and a just transition must be embedded throughout the design of transition pathways and the entire financing process.
Last year, the United Nations Development Programme signed a cooperation agreement with the Shanghai Environment and Energy Exchange to combine China's carbon market practices with the Global High-Integrity Carbon Market Initiative. The two sides jointly explore market innovation, climate finance, and nature-based solutions, balancing environmental sustainability with social inclusiveness.
He stated that, looking globally, carbon markets hold the potential to allocate climate finance across borders. Article 6 of the Paris Agreement provides a framework to support countries in cooperating through cross-border transfers of carbon credits. An interconnected carbon market system can channel climate finance to the regions around the world that need it most. The Open and Compliant Carbon Market Alliance, co-chaired by China with support from the United Nations Development Programme, brings together countries to enhance the interoperability of national carbon markets and unlock opportunities for international cooperation.
Stefan Liller stressed that seizing the opportunities of carbon markets requires coordinated action from all stakeholders: improving data infrastructure, publicly disclosing project outcomes, jointly developing projects with communities, and formulating robust investment plans.
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