As reflected in the emphasis on “green development” of the recently-released 13th Five Year Plan, China’s leaders recognize the need to shift to a more sustainable, climate-friendly model of development. They have signaled that they believe market pricing is a key element of the new model, and that carbon pricing is an important policy instrument for achieving this shift. While China’s carbon trading pilots and planned national trading system have received much attention, a carbon tax is also being seriously discussed. Government think tanks have proposed various options for the sectors to be covered, tax administration, and use of the revenue to complement existing policies.