Kathmandu— China's national carbon emissions rights trading market has exceeded 930 million tonnes in cumulative trading volume as of the end of July 2026, according to Minister of Ecology and Environment Huang Runqiu. Launched in 2021, the market aims to help industries reduce carbon emissions at a lower cost while supporting China’s transition towards a greener economy. The country recently unveiled its 15th Five-Year Plan for environmental improvement, which includes plans to expand the scope of the carbon trading system and further reduce emissions.

Market Progress and Impact

Minister Huang Runqiu stated that the national carbon emissions rights trading market has played a substantial role in facilitating China’s green and low-carbon transition. The market allows industries to cut carbon emissions at lower costs, incentivizing more sustainable practices. Since its inception in 2021, it has become a key component of China's climate change strategy.

Expansion Plans for Increased Coverage

China intends to expand the national carbon emissions rights trading market beyond its current focus on power generation, steel, cement, and aluminum smelting. Vice Minister of Ecology and Environment Li Gao announced plans to include high-emission industries such as petrochemicals and chemicals in the system. This expansion is projected to bring approximately 80 percent of the country’s total carbon dioxide emissions under effective control.

Five-Year Plan Targets Emission Reduction

The recently issued 15th Five-Year Plan for Building a Beautiful China outlines specific goals for the national carbon market. The plan calls for orderly expansion of the market's coverage, an increase in participating entities, and a reduction of around 3 percent in carbon emissions per unit of product covered by the system. This demonstrates China’s commitment to achieving its climate targets through both regulatory measures and market-based mechanisms.

China will continue to prioritize green and low-carbon transitions across key sectors while also strengthening control over non-carbon dioxide greenhouse gas emissions like methane, according to officials.

(With inputs from Xinhua)

Originally published on abcnews.com.np.