Sectoral crediting mechanism: How far China has to go

► Latest developments in Sectoral Crediting Mechanism design have been reviewed. ► Ten years would be an ideal duration to adjust sectoral crediting baseline in China. ► Specific sectors could be selected to solve the carbon credits over-supply problem. ► SCM credits may come short of the mitigation costs, claiming a rising carbon price. ► Pricing system in China's electricity sector makes it not a good candidate for SCM.