This report, Enhancing China's ETS for Carbon Neutrality: Focus on Power Sector, responds to the Chinese government’s invitation to the IEA to co-operate on carbon emissions trading systems (ETS) and synergies across energy and climate policies. It shows that an enhanced ETS could lead the electricity sector toward an emissions trajectory that is in line with China’s carbon neutrality target. This report also explores the interactions and effects of China’s national ETS with its renewable energy policy in the electricity sector, namely renewable portfolio standards (RPS). It examines the impact of different Enhanced ETS Scenarios on CO₂ emissions, generation mix, cost‑effectiveness and interaction with RPS