Future outlook of China’s transition towards a unified national ETS

China’s national ETS has completed its first compliance period by the end of 2021 and is currently in its second cycle. This analyst update briefly discusses the main difficulties in the transition of pilots to a unified national ETS. Based on the recent policy developments, it suggests that the establishment of the unified national ETS will likely take place by 2030, after the realization of the national ETS full scope expansion.