China Leads World in Carbon Trading as Market Hits Five‑Year Mark

Beijing, July 16 – On its fifth anniversary, China’s carbon emissions trading market has solidified its position as the globe’s largest. The Ministry of Ecology and Environment disclosed that the scheme has been instrumental in reducing emissions across heavy‑industry sectors while keeping mitigation expenses down.

By June, the cumulative volume of traded emission allowances surpassed 917.7 million tonnes, valued at more than 61.7 billion yuan. The first half of 2026 recorded a trade of 52.96 million tonnes, a 37 percent increase compared with the same period in 2025.

Liu Shitse, deputy head of the climate change department, noted that the power sector alone cut 530 million tonnes of CO₂ during the 14th Five‑Year Plan (2021‑2025). Around 80 percent of participants have achieved reductions in carbon intensity, and over 200 legacy small‑scale power plants were decommissioned over the last three years. New low‑carbon initiatives, including solar‑thermal and green hydrogen projects, are receiving strong backing.

Since its launch on 1 July 2021, the market’s participant base expanded from 2,162 power plants to 3,378 major emitters in steel, cement and aluminium, covering roughly 8.03 billion tonnes of CO₂ – more than 65 percent of national emissions.

The ministry plans to bring all key industrial emitters into the system by 2027, ensuring carbon pricing mirrors the real cost of emission reductions. Under the 15th Five‑Year Plan (2026‑2030), the aim is a 3 percent drop in carbon emissions per unit of output for the sectors now covered.