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China has set a goal to achieve peak CO2 emissions before 2030 and carbon neutrality by 2060. To achieve the goals of carbon peak and carbon neutrality, China needs to address the challenge of the large and still growing CO2 emission base. This paper investigated the energy consumption and CO2 emission in Beijing from 2020–2035 based on the energy elasticity coefficient and contribution value of the sub-energy increment (CVSI) method. Beijing is one of the first cities in China to propose the "carbon peak" target as of 2020. From 2020 Beijing will strive to achieve the goal of carbon neutrality. The results show that in 2035 the CO2 emission in Beijing may drop to 50% of 2020. This decline would be affected by economic growth, energy efficiency and the proportion of renewable energy use. Beijing's energy supply mainly comes from outside the region. Therefore, for Beijing, in addition to increasing the proportion of renewable energy sources outside the region, its own energy acceptance also needs to be strengthened, including strengthening energy storage construction, actively researching and promoting carbon capture and utilization of gas-fired units, which are effective ways to achieve carbon neutrality target. [ABSTRACT FROM AUTHOR]

Abstract Chinese energy consumption structure has been dominated by coal for a long time, which makes China facing serious environmental problems. To achieve the target of CO2 emission reduction, a carbon emission trading (CET) market and promoting the development of new energy should be worthy choices. The issues of dynamic linkages and spillover effects between the CET market, the coal market and the stock market of new energy companies (NEC) are important topics for studies. The paper applies a VAR(1)-DCC-GARCH(1,1) model and a VAR(1)-BEKK-AGARCH(1,1) model to obtain the following conclusions: (1) There exists significant time-varying correlations and long-run persistence of shocks to the DCCs between Beijing CET market, the coal market and the stock market of NEC, and the coal market and the new energy stock market have higher volatility persistence; (2) There is a bi-directional spillover effects between the coal market and the stock market of NEC, which is consistent with the results of the Granger causality; (3) The optimal weight is 82.65% for new energy stock and 17.35% for coal. The optimal hedge ratio is 49.98% for coal, while the optimal hedge ratio is 17.34% for new energy stock. Highlights • There are significant time-varying correlations and long-run persistence of shocks to the DCCs between three markets. • There is a bi-directional volatility spillover between the coal market and the new energy stock market. • The optimal weight is 82.65% for new energy stock and 17.35% for coal. • The optimal hedge ratio is 17.34% for new energy stock and 49.98% for coal. [ABSTRACT FROM AUTHOR]