Achieving peak carbon dioxide emissions by 2030 and carbon neutrality by 2060 are major strategic targets made by the Central Committee of the Communist Party of China (CPC) after careful consideration. The power sector is responsible for more than 50% of China’s total carbon dioxide emissions, so effective control and reduction of CO2 emissions from this sector is essential for China to meet its dual-carbon goal. Thermal power accounts for a large part of China’s power generation (69% in 2020), so there is an urgent need to optimise the generation mix. The national emissions trading scheme (ETS) is an important means to optimise the power supply structure, improve power generation efficiency and spur the low-carbon development of the power sector.