China's upcoming plans for individual carbon account management

In recent years, transportation has emerged as a key application scenario for carbon accounts in China, due to its relative simplicity in monitoring and calculating carbon impact. This shift comes amidst a lack of academic research on the effectiveness of carbon inclusivity, a sector that incentivizes individuals to tally low-carbon behaviours and convert them into a form of carbon credits.

The earliest personal carbon-accounting systems in China were initiated by the Guangzhou municipal government in 2015. One of the most well-known platforms for personal carbon accounting in China is Ant Forest, launched by Alipay in 2016. This app directs users' points towards forestation projects, offering them the opportunity to exchange their earned credits for discounts on various services such as taxis, groceries, shopping, and even home mortgages.

A notable example of this system's impact can be seen in Wuhan, where a woman named Wei Ying managed to knock CNY 90 off her monthly mortgage repayment in May 2021 by using a personal carbon-accounting app. To achieve this, she accumulated 45,000 grams of credits, and with an additional 20,000 grams, she also received a discount on wine. The carbon credits in Wuhan can be earned through various means, such as using public transportation, biking, or even taking bus trips. For instance, every bus trip earns 212.5 grams of emissions reductions, every kilometre on a subway gets 78.4 grams, and on a bike, 93.3 grams.

However, the development of personal carbon accounts in China has not been without challenges. Establishing baseline emissions and the "additionality" of emissions-reduction mechanisms are concerns in carbon accounting. The exclusion of carbon accounts from China's voluntary carbon market last year has deferred any near-term national-level programs, casting doubt on the future of these systems.

Another issue that has arisen is the concern around data and personal privacy. Additionally, the use of such platforms to generate carbon offsets credits has been a point of contention due to the difficulty of proving emissions have really been saved, as well as the risk of double-counting across multiple accounts. Criticism of carbon accounting has also pointed to flaws or inaccuracies in the methods used to calculate carbon offsets.

Despite these challenges, the potential for personal carbon accounts to encourage sustainable behaviours and reduce carbon emissions remains significant. For instance, researchers have found "green nudges" on food delivery apps to be effective in reducing waste. As the concept of carbon accounting continues to evolve, it is hoped that these issues will be addressed, paving the way for a more carbon-inclusive future in China.