Financing security system for carbon emission allowances under Chinese law

This article explores the legal framework for securing carbon emission allowances in financing transactions under Chinese law. With China's "dual carbon" goals driving the transition of carbon emission allowances from administrative tools to market-based assets, the increasing demand for their use as collateral necessitates the construction of a stable and predictable security regime. It is argued that carbon emission allowances should be classified as usufructuary rights, aligning with their private property characteristics. Appropriate developments in the law could help reduce compliance costs for Chinese shipping enterprises.

Introduction