Briefing Paper – Climate Finance, Carbon Pricing, and Data Disclosure

This briefing paper by the World Resources Institute analyzes the state of climate finance, carbon pricing, and data disclosure in the United States and China. It details the U.S. reliance on subnational carbon markets and the SEC's evolving disclosure rules, alongside China's implementation of the world's largest emissions trading scheme (ETS) and its 'South-South' finance mechanism. The document concludes by suggesting areas for bilateral cooperation, specifically in sustainable procurement, data standards, and subnational carbon market exchanges.

• The United States lacks a mandatory national carbon pricing mechanism due to political polarization and economic concerns from fossil-fuel-dependent regions, but significant progress has been made at the subnational level. Thirteen states, representing over 25% of the population and one-third of the GDP, have implemented carbon-pricing programs, including stand-alone systems in California, Oregon, Washington, and Massachusetts, as well as the Regional Greenhouse Gas Initiative (RGGI) involving eleven Northeast states.
• U.S. international climate finance is delivered through bilateral and multilateral channels, with the Biden administration projecting it will meet a goal of $11.4 billion by 2024. Key contributions include $2 billion total to the Green Climate Fund (GCF) and a $7.1 billion spending package for small Pacific Island countries for adaptation and environment protection over 20 years. However, the U.S. contribution of $17.5 million to the Loss and Damage Fund has been criticized as insufficient.
• China has established the world's largest mandatory Emission Trading Scheme (ETS), launched in 2021, which initially covers the power sector. The system uses an intensity-based design with free allocations rather than absolute emission caps. As of 2023, it covered over 2,100 large emitters and approximately 4.5 billion tCO2e per year, representing over 30% of China's total GHG emissions. The ETS is expected to expand to the aluminum smelting and cement industries in 2024.
• China utilizes a 'South-South' mechanism for climate finance, managed by the Ministry of Ecology and Environment, though delivery has been limited; only 10% of a promised $3.1 billion fund for the Global South was delivered over seven years. China maintains that as a developing country, it is not obligated to provide international climate finance under the principle of 'Common but Differentiated Responsibilities'.
• Both the U.S. and China are implementing corporate climate disclosure rules, though they differ in scope. The U.S. SEC finalized a rule in March 2024 for larger public companies to disclose Scope 1 and 2 emissions if financially material, but excluded Scope 3 emissions. In contrast, California laws SB 253 and SB 261, effective in 2026, will require companies with revenues over $1 billion to disclose Scope 1, 2, and 3 emissions. China's three major stock exchanges released draft guidelines in February 2024 requiring over 400 listed companies to report Scope 1 and 2 emissions, with Scope 3 reporting suggested only for those 'with the right conditions'.
• China has reactivated the China Certified Emission Reduction (CCER) scheme in January 2024, allowing companies to sell carbon credits from projects in afforestation, solar thermal power, offshore wind power, and mangrove planting. Additionally, China uses Green Electricity Certificates (GECs) to verify renewable energy consumption, though the market remains small, with 2022 GECs representing only 0.8% of total renewable energy generation.

APA

World Resources Institute (n.d.). Briefing Paper – Climate Finance, Carbon Pricing, and Data Disclosure. https://files.wri.org/d8/s3fs-public/2024-07/2024-climate-finance-carbon-pricing-briefing-EN.pdf

Chicago

World Resources Institute. Briefing Paper – Climate Finance, Carbon Pricing, and Data Disclosure. n.d. https://files.wri.org/d8/s3fs-public/2024-07/2024-climate-finance-carbon-pricing-briefing-EN.pdf.

Wikipedia

{{cite report |author=World Resources Institute |title=Briefing Paper – Climate Finance, Carbon Pricing, and Data Disclosure |url=https://files.wri.org/d8/s3fs-public/2024-07/2024-climate-finance-carbon-pricing-briefing-EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendbriefing, author = {{World Resources Institute}}, title = {{Briefing Paper – Climate Finance, Carbon Pricing, and Data Disclosure}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/2024-07/2024-climate-finance-carbon-pricing-briefing-EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }