As an important policy tool for using market mechanisms to control greenhouse gas emissions and promote a comprehensive green transformation of economic and social development, the national carbon emissions trading market has maintained stable and orderly operation in recent years, market vitality has steadily increased, has gradually grown to promote carbon peak carbon neutrality“Main force” and China’s carbon pricing“Vane”.
As of December 31,2025,865 million tonnes of carbon market quota had been sold, exceeding the 57.6 billion yuan mark and reaching 57.663 billion yuan, the Ministry of Ecology and Environment said. Sun Jinlong, secretary of the party group of the Ministry of Ecology and Environment, pointed out that after years of deep cultivation, the top-level design of our country’s carbon market is getting better and better, and a multi-level policy system has initially taken shape. In the future, the coverage of the industry will continue to be expanded, we will enrich the types and methods of carbon trading and strive to build a more effective, dynamic and influential carbon market.
With the continuous optimization of the institutional system, the trading scale of the national carbon market is continuously expanding. The latest figures from the Ministry of Ecology and environment show that in 2025,3,378 key emitters were included in the national carbon market, covering key sectors such as steel, cement and aluminium smelting. The quota turnover reached 235 million tons in 2010, up by about 24 percent year-on-year, with a turnover of 14.63 billion yuan. The trading price remained within a reasonable range, with an average of 62.36 yuan per ton, the year-end closing price climbed to 74.63 yuan per ton. In addition, the market also through the organization of 8 one-way auction and other ways to effectively meet the diversified trading needs.
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In regional trials, too, remarkable results have been achieved. As one of the first pilot areas in China, the Shanghai carbon market has included more than 400 enterprises and more than 1,800 investment institutions in 28 industries such as chemical and construction. It was the first to include the aviation industry and the only one to include the water transport industry. For four consecutive years, Shanghai has completed its annual compliance clearance ahead of schedule. Hubei is home to the country’s carbon emissions registration and settlement system, which manages the accounts of 3,700 key emitters and covers about 8 billion tonnes of carbon allowances, accounting for more than 60% of the country’s total greenhouse gas emissions. Hubei is also the first province to launch a“Electricity-carbon-finance” coordination mechanism, with a public service platform for carbon inclusion and carbon footprint, making low-carbon behaviour“Tradable and realizable” for small and micro businesses and the public.
2025 will also be a crucial year for China’s carbon market. In September 2025, at the UN Climate Change Summit, China officially released a new round of nationally determined contribution (NDC-RRB- targets, clearly stating that the target would run until 2035, economy-wide net greenhouse gas emissions will fall by 7-10% from peak levels by 2035. In August of that year, “Opinions on promoting the green and low-carbon transition and strengthening the construction of the National Carbon Market” were released, marking a new stage of deepening and accelerating the national carbon market. Wang Jinnan, a member of the Chinese Academy of Engineering, suggested that the relevant departments should set an expected target of net zero growth in total national carbon emissions during the 15th five-year plan period, the total amount control system of“Carbon Market + regional decomposition + national flexible reserve” should be established to prepare the system for the change of carbon emission control mode.
In terms of international exchanges and cooperation, China’s carbon market is gaining international influence. During the China Carbon Market Conference held in September 2025, the Beijing Green Exchange signed a memorandum of Understanding on cooperation with the singapore-based MVGX technology company, laying a solid foundation for cross-border carbon credit technology docking and Market Interconnection. International experts such as Kurt van den Berg, director-general of climate action at the European Commission, and Stefano, secretary-general of the International Partnership for action on carbon (ICAP) , all highly praised the effectiveness of China’s carbon market, it is believed that China’s practice not only promotes its own green transformation, but also provides valuable experience for the construction of global carbon market. The head of the Department of Climate Change of the Ministry of Ecology and Environment said that China is actively carrying out cross-border carbon trading related research and management system construction, and promoting the international mutual recognition of China’s carbon market technologies and standards, in order to better play China’s leading role in global climate governance.
Analysts point out that, in 2025, the volume and turnover of the national carbon market increased, and the coverage of the industry expanded, indicating that the market’s function in guiding prices and allocating resources has increased significantly, corporate awareness of carbon asset management is growing. Innovation Practices in Shanghai, Hubei and other places have proved that“Electricity-carbon-finance” and other mechanisms can also effectively link financial capital and the real economy. More importantly, with the update of NDC targets and the deepening of cross-border carbon trading exploration, China’s carbon market is transforming from a single domestic emission reduction tool to an asset pricing center with international influence. In the future, with the possible launch of carbon futures and other derivatives and the gradual recognition of international standards, carbon market price signals will more accurately guide low-carbon investment in the whole society, it will provide strong market support for China to achieve the 2035 emission reduction target. (Wen Xin)