The modular governance of blue carbon resources: an empirical analysis of China

Purpose The purpose of this study is to develop a modular governance framework that can support China’s climate mitigation and adaptation commitments in international climate agreements by enhancing market-based allocation and governance of blue carbon resources in China. Design/methodology/approach A multi-case comparative analysis of blue carbon regulatory pilot programs in Fujian, Guangdong and Hainan is conducted using a theory of modularity. A systematized diagnoses of institutional barriers to China’s blue carbon governance is presented, as well as pathways for improving institutional efficiency and integrating the market. Findings Public monitoring functions are progressively decoupled from private development rights in the market oriented under regulation model. Market mechanisms have driven significant price differentiation in blue carbon trading, alongside the emergence of financial modularity such as insurance products. In the entrusted management model, communities retain use rights, while enterprises acquire rights of exploitation, allowing compensation funds to support livelihood transitions without forced reclamations. The international connection model prioritizes alignment with the Verified Carbon Standard to facilitate cross-border blue carbon transactions. However, all models operate through local platforms rather than the national China Certified Emission Reduction mechanism, revealing a critical modular mismatch. Originality/value This study proposes a modular governance framework that formalizes public regulatory functions, marketizes private transaction rights and socializes community-based hybrid rights. Providing actionable governance solutions across institutional, technical and international cooperation dimensions, this study contributes to the global discourse on blue carbon resources.