context: CPC Central Committee and State Council Opinions on promoting green and low-carbon development and strengthening the carbon market is the first central-level policy dedicated to the carbon market. It outlines a timetable, roadmap and task list for the market across the medium to long term. In particular, it makes concrete what has been expected for a while, that seven key high-emitting sectors will be covered by 2027, with hard caps to be introduced for sectors with 'stable emissions' after that period.
2025 marks the fourth anniversary of the national carbon market. Over the past year, it has made breakthroughs
- expanding to cover steel, cement and aluminium smelting industries
- reissuing the first CCERs (China Certified Emissions Reductions) since 2017
- extending CCER project methodologies to biomass power generation, oil and gas methane recovery
In an interview with 21st Century Business Herald, Xia Yingxian 夏应显 MEE (Ministry of Ecology and Environment) Climate Change Department director-general, shared his views
- the national carbon market has formed a relatively complete system of laws and regulations
- cumulative trading volume reached 669 million tonnes in 2025, with a turnover of approximately C¥45 bn
- compliance performance has steadily improved and the 'price signal' is gradually taking effect
- the voluntary greenhouse gas emissions trading market has registered 23 projects with 9.48 million tons of reductions
- the variety of carbon financial products continues to expand
The national market has become a key tool for controlling greenhouse gas emissions and driving a comprehensive low-carbon transition, according to Xia
- growing carbon finance activity
- carbon finance has flourished with diverse products emerging and local markets experimenting actively
- MEE hopes to
- broaden participation to allow financial institutions to participate in both markets
- expand product offerings, including carbon-linked green finance instruments
- strengthen supervision to prevent manipulation and systemic risks
- progress in climate investment and finance pilots
- since 2022, 23 pilot regions have advanced climate finance, with
- over 200 supporting documents issued
- over 5,400 projects with total investment above C¥3 tn
- diverse tools, including the carbon-reduction support facility
- since 2022, 23 pilot regions have advanced climate finance, with
- engaging in global carbon market rule-making
- the PRC is now a major player in global carbon governance
- MEE is actively exploring cross-border trading and building related institutions
- it will continue to push for international recognition of its standards and methodologies
- responding to the US withdrawal from the Paris Agreement
- The US' retreat undermines climate cooperation, but green and low-carbon development remains the global trend
- the PRC will work with all parties to uphold multilateralism and continue to pursue its dual-carbon goals prudently, contributing to global climate action