Ministry of Ecology and Environment: Over 60% of China's carbon emissions have been effectively controlled

On August 26th, the Ministry of Ecology and Environment held its regular press conference for August. Pei Xiaofei, spokesperson for the Ministry of Ecology and Environment, stated that the carbon market is an important policy tool for actively addressing climate change and accelerating the comprehensive green transformation of economic development through market mechanisms. In 2021 and 2024, China has successively established and launched the National Carbon Emission Trading Market and the National Greenhouse Gas Voluntary Emission Reduction Trading Market. The two markets have their own focuses and are interconnected, jointly forming the national carbon market system.

After more than four years of development, the national carbon market has initially formed a multi-level and relatively complete regulatory system for the carbon market. The coverage of key industries continues to expand. In addition to the power generation industry, the steel, cement, and aluminum smelting industries were also included in the national carbon emission trading market at the beginning of this year, effectively controlling over 60% of the country's carbon emissions. As of August 22, 2025, the cumulative trading volume of quotas in the national carbon emission trading market reached 680 million tons, with a turnover of 47.41 billion yuan. The national greenhouse gas voluntary emission reduction trading market has accumulated 2.49 million tons of verified voluntary emission reductions, with a transaction volume of 210 million yuan.

Pei Xiaofei pointed out that the recently released "Opinions on Promoting Green and Low Carbon Transformation and Strengthening the Construction of the National Carbon Market" is the first central document in China's carbon market field, which clarifies the timetable, roadmap, and task book for the medium and long-term development of the national carbon market. In the future, we will focus on deepening the construction of the national carbon market, enhancing the vitality of the carbon market, and improving management level to ensure effective implementation.

Firstly, based on the development status of the industry, contributions to carbon and pollution reduction, data quality foundation, carbon emission characteristics, etc., the coverage of the mandatory carbon market should be expanded in an orderly manner. Establish a carbon emission quota management system with clear expectations and transparency, clarify the long-term carbon emission quota control targets in the market, and gradually shift from intensity control to total quantity control. The quota allocation method has shifted from free to a combination of free and paid, with an orderly increase in the proportion of paid allocation. At the same time, we will actively develop voluntary carbon markets, establish a scientifically sound methodological system, and accelerate the methodological development in key areas such as ecosystem carbon sinks, renewable energy, and methane emissions reduction.

Secondly, we will collaborate with financial institutions to explore the development of green financial products and services related to carbon emission rights and voluntary emission reduction certification, and establish policies and systems such as carbon pledge and carbon repurchase. At the same time, we will prudently promote the participation of qualified financial institutions in the national carbon market trading under the premise of legal compliance and controllable risks, and timely introduce other non compliant entities to participate in mandatory carbon market trading and eligible natural persons to participate in voluntary carbon market trading.

Finally, strictly regulate carbon emission verification and improve the technical specifications for key industry verification. Consolidate the main responsibility of key emission units to fulfill carbon emission accounting and reporting. Strengthen the supervision of the entire process of carbon emission data quality and crack down severely on various fraudulent behaviors. In addition, research and improve relevant laws and regulations, continuously consolidate the institutional foundation of carbon market construction, and provide strong guarantees for accelerating the construction of a more effective, dynamic, and internationally influential national carbon market.