Carbon pricing to accelerate the diffusion of low carbon technology in China

This policy brief suggests that carbon pricing can accelerate the diffusion of lowcarbon technology in China, based on the results of empirical studies conducted by Kansai Research Centre of IGES focusing on China’s most energy intensive industries. Many low-carbon technologies are profitable but require some initial investment. Chinese companies strongly prefer a short payback period for these investments. In order to accelerate technology diffusion in its energy intensive industries, China should implement carbon pricing policies to reduce the payback period for these investments and enhance their profitability.