National Carbon Market Operating Smoothly

China’s national carbon market, inaugurated in July 2021, reported a total trading volume of 194 million tonnes in its first year of operation, with the transaction value exceeding RMB 8.49 billion. The largest of its kind worldwide, the market covers 2,162 major power generation companies, representing 4.5 billion tonnes of carbon dioxide emissions.

The national carbon market is one of China’s policy tools to cope with climate change and curb greenhouse gas emissions. It serves as a reference for other developing countries in establishing such markets and is important for the creation of a global carbon pricing mechanism — thus drawing extensive attention globally.

The market is still in an early stage. Relevant authorities will strengthen data supervision, improve management, increase information transparency, and heighten punishment for violation of laws and rules.