Last year, China's annual carbon emission quota trading volume reached 18.1 billion yuan, setting a new record high

The 2025 China Carbon Market Conference was held in Shanghai, where the *National Carbon Market Development Report (2025)* (hereinafter referred to as the *Report*) was released. Compiled under the organization of the Ministry of Ecology and Environment, the *Report* provides a comprehensive overview of the national carbon market's construction and operational status since 2024. The *Report* reveals that in 2024, China's annual carbon emission quota trading volume reached 18.114 billion yuan, marking a record high since the market's launch in 2021.

2025 China Carbon Market Conference

In March 2025, building upon the power generation sector, the State Council officially approved the inclusion of the steel, cement, and aluminum smelting industries into the national carbon emissions trading market.

The report noted that the Ministry of Ecology and Environment is currently accelerating the development of quota allocation plans for the steel, cement, and aluminum smelting industries in accordance with procedural requirements. A list of 1,334 key emission units from three newly included industries has been published, and monthly digital documentation of carbon emission-related data has been fully initiated, with the establishment of corporate accounts steadily progressing. Additionally, the Civil Aviation Administration of China is actively organizing the development of a carbon emission accounting and verification guideline for the civil aviation industry, researching and formulating a work plan for the industry's participation in the national carbon market, and promoting the early inclusion of the civil aviation sector into the national carbon emissions trading market management.

The report shows that since 2024, key emission entities included in the national carbon emissions trading market have conducted market transactions in an orderly manner, with trading volumes reaching record highs. In 2024, the annual trading volume of carbon emission quotas reached 18.114 billion yuan, setting a new annual record since the market's launch in 2021. As of the end of August 2025, the cumulative trading volume of carbon emission quotas in the national carbon emissions trading market had reached 696 million tons, with cumulative trading value amounting to 47.826 billion yuan. Additionally, trading prices reflect supply-demand dynamics, with increased participation willingness among trading entities and gradual diversification and upgrading of trading products and methods.

In 2024, the national carbon market's quota allocation and surrender process was successfully completed. The report indicates that by the end of 2024, the 2023 annual quota surrender rate reached 99.98%, marking a new record and further improvement compared to the second compliance cycle. Among these, 28 provincial-level regions across the country achieved 100% compliance, a significant increase from the previous two compliance cycles, with only four key emitting entities failing to meet the requirements on time and in full. For these key emitting entities that did not surrender their quotas on time and in full, local ecological and environmental authorities have taken action in accordance with the regulations.

The report shows that, through joint efforts of all parties, the national carbon market has operated smoothly and orderly, with an increasingly sound institutional framework and further enhanced market vitality. Key emitting entities have strengthened their carbon reduction awareness, and the completion of quota settlement has shown comprehensive improvement. Various market participants have actively engaged in voluntary development and implementation of emission reduction projects, with the functions of the carbon market continuously emerging.