The pursuit of carbon neutrality has emerged as a defining imperative of the twenty-first century, presenting both existential challenges and unprecedented opportunities for nations of the Global South. While often framed as a burden, the transition to a low-carbon economy offers a pathway for these countries to leapfrog carbon-intensive development models and achieve sustainable growth. This chapter undertakes a critical examination of this dynamic, using the case of the People’s Republic of China. The analysis begins by dissecting the multi-layered architecture of China’s response, detailing the foundational policies, the evolving legislative framework, and the role of the judiciary in enforcing environmental norms. The chapter also reveals that this rapid expansion has resulted in a framework characterized by systemic structural incoherence and institutional fragmentation. A detailed diagnosis identifies three primary challenges: (1) fragmentation, where policies and regulations are dispersed and overlapping across sectors and regions, leading to inefficiencies; (2) the absence of a hierarchically integrated and codified legal framework to provide clear direction and authority; and (3) a profound lack of coordination among legislation, judicature, and law enforcement, undermining the system’s coherence and effective implementation. To transcend these limitations, the chapter introduces the lens of Dynamic System Theory. This theoretical perspective reframes carbon neutrality governance not as a static set of rules but as a complex, adaptive, and self-organizing system. By conceptualizing the legal, policy, and enforcement mechanisms as interacting and evolving subsystems, this approach provides a robust analytical tool for diagnosing institutional inertia and enhancing regulatory coherence, adaptive capacity, and institutional resilience.