Caixin Summit: Chicago Climate Exchange Founder Talks Up China’s Carbon Reduction Efforts
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The founder of the Chicago Climate Exchange has praised China’s efforts in improving its carbon trading market, saying that carbon will become a new type of digital asset amid the rapid development of artificial intelligence and tokenization.
In a video address to the 16th Caixin Summit on Friday, Richard Sandor, known as the “father of carbon trading,” said that mandatory and voluntary carbon trading schemes should coexist, stressing that voluntary carbon trading could be more important as it helps countries explore the boundaries of new ideas and things amid the green transition.
China launched its mandatory carbon trading market in 2021. Three years later, the country set up its voluntary carbon trading market, with a goal to encourage wider societal participation.
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- Richard Sandor praised China's progress in carbon trading, highlighting its shift toward digital assets and AI integration.
- China launched both mandatory (2021) and voluntary (2024) carbon trading markets, with a 2025 guideline to phase out intensity-based targets for absolute emissions caps.
- Sandor recommended a moderate transition pace and adequate industry preparation before implementing absolute emissions caps.
- Chicago Climate Exchange
- Richard Sandor, founder of the Chicago Climate Exchange, is known as the "father of carbon trading." He believes that carbon will become a digital asset, emphasizing the importance of both mandatory and voluntary carbon trading schemes. Sandor advocates for allowing industries adequate time to prepare before transitioning to an absolute emissions cap-based system.
- 2021：
- China launched its mandatory carbon trading market.
- 2024：
- China set up its voluntary carbon trading market.
- August 2025：
- China issued a guideline to shift from intensity-based carbon emission targets to an absolute emissions cap.
- November 14, 2025：
- Richard Sandor addressed the 16th Caixin Summit, praising China’s carbon trading developments.
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