This chapter examines how market-based instruments are integrated into nationally managed climate and energy systems, using China as a key case study. It traces the evolution of the emissions trading system (ETS) from fragmented local pilot projects to the gradual expansion of sectoral coverage in the national market, and documents how allocation methods, price stabilization tools, and coverage have been adjusted in response to policy lessons and implementation constraints. Based on existing empirical studies, this chapter summarizes the impact of ETS participation on emissions, energy efficiency, and investment behavior in high-emission sectors, particularly the energy sector. It then discusses the Clean Development Mechanism/China Certified Emission Reductions (CDM/CCER) and describes regulatory reforms under “CCER 2.0”, approaches to existing CDM projects, and the new role of forests and oceans as carbon sinks in supporting the supply of carbon credits while maintaining environmental integrity. An analysis of the Energy Quota Trading System (EQTS) reveals interactive mechanisms between “hard caps” on energy consumption and carbon prices in a two-part system, along with provincial pilot initiatives exploring innovations in quota allocation, trading rules, and data management. The integrated arguments in this chapter show that the interaction between the ETS, CCER, and EQTS is gradually creating a framework for “joint energy and carbon management.“ Within this framework, allowances, project credits, and energy consumption controls achieve synergy rather than simple addition, which provides the basis for the more detailed sectoral and regional analyses presented in the following chapters.