Carbon Emission Rights as a New Form of Usufructuary Right

The debate surrounding the legal nature of carbon emission rights arises from the tension between their dual characteristics of public and private law, which challenges traditional property rights theory. This tension has led to conflicts regarding the effectiveness of legal frameworks, fragmented regulations, and a crisis of institutional trust within the carbon market. Carbon emission rights should be redefined as a novel form of usufructuary right, with ecological capacity resources—owned by the state—serving as the object. These rights are realized through digitalization and specificity enabled by blockchain technology. Their powers and functions can be understood as twofold: the power of quota control, which falls under public law constraints, and the power of ecological benefits, which exists within private law autonomy. The former limits the boundaries of private rights by ecological thresholds, while the latter translates ecological value into non-possession benefits. To address these issues, a “two-stage governance” system can be established through a dynamic interpretation of Article 329 of the Civil Code of the People’s Republic of China (2020), creating a registration system and enacting specialized legislation for Carbon Emission Rights Trading. By conceptualizing carbon emission rights as a new type of usufructuary right, the contradictions between public and private law can be reconciled, enabling the transition of the carbon market from a policy-driven to a rights- and law-based operation.