The Impact of China's Carbon Market on the Decarbonization of the Coal Power Industry: An Approach Considering Long‐Term Carbon Net Expenditures

Coal‐fired power industry is a major carbon emitter which is responsible for global warming. The carbon market is an important tool to decarbonize the coal‐fired power industry. This study extends the cited Chinese literature on how carbon net expenditures impact investments at the technology level. A metric, the long‐term carbon net expenditure, is introduced to estimate the carbon net expenditure of decarbonization projects throughout their service life. The analysis suggests that retrofitting existing coal‐fired power units for biomass co‐firing will become economically feasible from 2043, and implementing carbon capture retrofitting will be viable from 2047. Enhancing the carbon market's long‐term development path is essential to promoting these decarbonization efforts.