https://j.people.com.cn/n3/2026/0717/c95952-20479100.html
July 16 marked the fifth anniversary of the launch of China’s national carbon emissions trading market. According to the Ministry of Ecology and Environment, carthe market has grown from scratch to become the world’s largest carbon emission trading market over the past five years. It plays a pivotal role in driving industrial decarbonization and reducing the overall cost of emissions reduction for society.
As of June this year, the cumulative trading volume of emission allowances in the national market exceeded 917 million tons, with a total transaction value surpassing 61.7 billion yuan. Trading volume for the first half of 2026 reached 52.96 million tons, an increase of approximately 37% year-on-year.
According to Lu Shize, Deputy Director of the Department of Climate Change at the Ministry of Ecology and Environment, during the 14th Five-Year Plan period (2021–2025), the thermal power sector alone achieved an actual reduction of 530 million tons of carbon emissions through the carbon market. Carbon emission intensity decreased for about 80% of the enterprises; nearly 200 aging, small-scale power generation units were shut down or phased out over the past three years, while new emissions-reduction projects—such as solar thermal power generation and green hydrogen production—were promoted. In addition to cutting carbon emissions, the market has contributed to reducing sulfur dioxide by 27,000 tons, nitrogen oxides by 94,000 tons, and particulate matter by 135,000 tons, demonstrating the gradually emerging guiding effect of carbon pricing.
China’s national carbon emissions trading market officially launched on July 16, 2021. Over the course of five years, the market’s scope has expanded from the initial 2,162 thermal power companies to 3,378 energy-intensive enterprises—including those in the steel, cement, and aluminum smelting sectors—covering approximately 8.3 billion tons of carbon dioxide emissions and accounting for more than 65% of the national total. By driving low-carbon development through market mechanisms, the national carbon market is paving a uniquely Chinese path to decarbonization that fosters economic growth, industrial upgrading, and ecological improvements, while delivering benefits across multiple fronts.