Core Insights - The national carbon emissions trading market in China is expected to achieve record transaction volumes by 2025 [1] Group 1: Market Performance - As of December 31, 2025, the cumulative transaction volume of carbon emission allowances reached 865 million tons, with a total transaction value of 57.663 billion yuan [1] - The annual transaction volume for 2025 was 235 million tons, generating an annual transaction value of 14.630 billion yuan [1]

Core Viewpoint - The 2025 Central Economic Work Conference emphasizes "adhering to 'dual carbon' leadership and promoting comprehensive green transformation" as one of the eight key tasks for economic work in 2026, signaling a consistent and strong policy direction for green and low-carbon development in China [1] Group 1: Systemic Transformation - The "dual carbon" initiative is seen as a profound systemic change, focusing on an energy revolution, industrial upgrades, and rule-making to achieve high-quality economic development and strategic advantages for the future [1][2] - The urgent need for a comprehensive green transformation in economic and social development is highlighted, with the "dual carbon" work being the core driver for this transition [1] Group 2: New Energy System Construction - The conference calls for the formulation of a national energy strategy and the acceleration of new energy system construction, emphasizing the expansion of green electricity applications [3] - The new energy system aims to integrate various energy sources and enhance resilience and intelligence in energy systems, transitioning from reliance on fossil fuels to renewable energy sources like wind and solar [3][4] Group 3: Carbon Emission Trading Market - The national carbon emission trading market is identified as a key policy tool for achieving "dual carbon" goals, with plans to deepen operations and expand its scope [5] - Future efforts will focus on including more high-energy-consuming and high-emission industries in the market and enhancing market liquidity through diverse trading products [5] Group 4: Overall Green Transition - Experts believe that with the implementation of the conference's directives, China will steadily advance on the path of green transformation, laying a solid foundation for building a beautiful China and achieving harmony between humanity and nature [6]

Group 1 - The EU Carbon Border Adjustment Mechanism (CBAM) will enter its mandatory phase on January 1, 2026, marking the world's first cross-border carbon tax system [1] - CBAM aims to price the "embedded carbon" in imported goods, ensuring that non-EU producers bear the same carbon costs as EU companies [1] - Importers of six high-energy-consuming product categories, including steel, cement, aluminum, fertilizers, electricity, and hydrogen, must report carbon emissions quarterly and purchase CBAM certificates based on the EU Emissions Trading System (ETS) auction prices [1] Group 2 - During the transition period, which began in October 2023, importers are not required to purchase CBAM certificates but must fulfill basic carbon emission reporting obligations [2] - As the implementation date approaches, companies, especially in the steel and aluminum sectors, are preparing for the new requirements, which include providing comprehensive carbon emission data [2] - The EU plans to extend CBAM coverage to downstream products, including 180 new categories such as machinery and household appliances, further broadening its impact [3] Group 3 - The Chinese Ministry of Ecology and Environment is actively monitoring the developments of the EU CBAM and will guide companies in adapting to the new regulations [4] - China is expanding its national carbon emissions trading market, with plans to include the steel industry in 2025, which will help align with international carbon pricing mechanisms [4] - Although the actual procurement and submission of CBAM certificates will be delayed until February 2027, companies must still account for these costs in their 2026 business decisions [5]

Group 1 - The core viewpoint of the articles is the expansion of the national carbon emissions trading market to include more industries, specifically steel, cement, and aluminum smelting, which is aimed at promoting green and low-carbon transformation in these sectors [1][2] - The Ministry of Ecology and Environment has issued a plan for the total amount and allocation of carbon emission allowances for the steel, cement, and aluminum smelting industries for the years 2024 and 2025, marking an important step in the expansion of the carbon trading market [1] - Key emission units are required to complete the first allowance surrender for 2024 within the year, and the pre-allocated allowances for 2025 will be distributed in the first half of next year, with a deadline for surrender by the end of next year [1] Group 2 - The expansion of the carbon emissions trading market is expected to drive more companies to reduce carbon emissions through technological innovation, energy-saving upgrades, and improved management efficiency, thereby fostering the development and investment in low-carbon, zero-carbon, and negative-carbon technologies [2] - The Ministry of Ecology and Environment has initiated preparatory work for expanding the trading market to include industries such as chemicals, petrochemicals, civil aviation, and papermaking, focusing on historical data governance and technical documentation [2] - The Ministry will adopt a principle of "mature one, include one" to gradually expand the coverage of the trading market to additional industries and greenhouse gas types, aiming for comprehensive coverage of major industrial emission sectors by 2027 [2]

Core Viewpoint - Green development is emphasized as a fundamental aspect of China's modernization, with a focus on achieving carbon peak and expanding the national carbon emissions trading market [1] Group 1: National Carbon Emissions Trading Market - The national carbon emissions trading market has been operational for four years, covering over 2,200 key emission units in the power sector, making it the largest carbon market globally in terms of greenhouse gas emissions coverage [1] - The market's design optimization and the relationship between local pilot markets and the national unified carbon market are critical issues that need to be addressed [1][2] - The carbon price fluctuations reflect the market's sensitivity to policy changes, with significant price movements observed around compliance deadlines [3][4] Group 2: Local Carbon Markets - Local carbon markets have provided valuable experience for the national carbon emissions trading market, but they should not disrupt the national market's construction and must complement it [2] - Local pilot markets can focus on managing small and medium-sized enterprises and explore total carbon emission quota controls tailored to local needs [2] Group 3: Carbon Price Dynamics - Carbon price fluctuations are normal, with the market currently being a compliance-driven one, where prices have shown a pattern of rising before compliance deadlines and stabilizing afterward [3][4] - Recent policies, such as the allocation and transfer of quotas, may lead to increased supply and potential price declines [4] Group 4: Market Stability and Risk Management - Establishing a robust market adjustment mechanism is essential to stabilize carbon prices and address market issues, emphasizing the need for transparency and stability in policies [5] - The involvement of financial institutions in the carbon market is encouraged, but it requires the establishment of sound trading and risk management systems [6] Group 5: Preparation for EU Carbon Border Adjustment Mechanism - Companies should prepare for the EU's Carbon Border Adjustment Mechanism by enhancing their carbon trading systems and ensuring accurate carbon footprint calculations [6][7] - Businesses are advised to adopt low-carbon practices and develop internal carbon management systems to effectively track emissions and identify reduction opportunities [7]

Core Viewpoint - China is playing a significant role in global climate governance and is actively promoting South-South cooperation to address climate change, receiving high praise from the international community [1][3]. Group 1: South-South Cooperation Initiatives - China has implemented over 300 capacity-building projects for developing countries to combat climate change [3]. - A total of 55 memorandums of understanding on South-South cooperation have been signed with 43 developing countries, focusing on low-carbon demonstration zones and climate change adaptation projects [3][4]. - The "African Light Belt" flagship project aims to provide electricity to approximately 50,000 impoverished households in Africa, with cooperation agreements signed with seven African countries [4]. Group 2: Capacity Building and Training - China has conducted over 300 capacity-building projects, providing training for more than 10,000 individuals from over 120 developing countries to enhance their climate change response capabilities [5]. - The country is committed to ongoing training programs focused on mitigation, adaptation, and funding themes to support developing nations [6]. Group 3: Carbon Market and Industry Transition - The steel, cement, and aluminum industries have been included in the national carbon emissions trading market, which is expected to enhance emission reduction responsibilities and drive low-carbon investments [7][8]. - The carbon market's expansion is anticipated to lower overall emission reduction costs, with the power generation sector already achieving a reduction of approximately 35 billion yuan in costs during the first two compliance cycles [8]. - Future plans include tightening emissions quotas for these industries and expanding the carbon market's coverage to optimize resource allocation for carbon reduction [9].

Core Viewpoint - The Ministry of Ecology and Environment is accelerating the construction of a national carbon market, aiming for comprehensive coverage of major industrial sectors by 2027 [1] Summary by Relevant Sections Carbon Market Expansion - The national carbon emissions trading market will expand its coverage to include major emission industries in the industrial sector by 2027 [1] Quota Control and Allocation - Implementation of total quota control and paid allocation will transition from intensity control to total control, gradually increasing the proportion of paid allocation [1] Quota Tightening and Price Signals - There will be a gradual tightening of quotas to enhance the scarcity of carbon allowances, aiming to provide clearer price signals for structural optimization and green low-carbon transformation in key industries [1] Voluntary Emission Reduction Market - The establishment of a voluntary emission reduction trading market will be accelerated, focusing on developing a comprehensive methodological system to support autonomous emission reductions and ecological value conversion [1] Market Vitality and Financial Products - Efforts will be made to enhance the vitality of the national carbon market by exploring green financial products and services related to carbon allowances and certified voluntary emission reductions, while also increasing the types and numbers of market participants [1]

Core Viewpoint - China announced new national contributions to reduce greenhouse gas emissions by 7% to 10% from peak levels by 2035, aiming for significant advancements in renewable energy and carbon trading markets [1] Group 1: Emission Reduction Goals - By 2035, China's total greenhouse gas emissions are targeted to decrease by 7% to 10% from peak levels [1] - The goal aligns with the requirements of the Paris Agreement, reflecting China's commitment to climate change mitigation [1] Group 2: Renewable Energy Targets - Non-fossil energy consumption is expected to account for over 30% of total energy consumption [1] - Installed capacity for wind and solar power is projected to exceed six times that of 2020, aiming for 360 million kilowatts [1] Group 3: Forest and Vehicle Initiatives - Forest stock volume is targeted to reach over 24 billion cubic meters [1] - New energy vehicles are expected to become the mainstream of new vehicle sales [1] Group 4: Carbon Trading and Climate Adaptation - The national carbon emissions trading market will cover major high-emission industries [1] - A climate-resilient society is aimed to be fundamentally established [1]

Group 1 - The Ministry of Ecology and Environment has included major cases of violations related to the national carbon emission trading market and the national voluntary greenhouse gas reduction trading market in the list of cases under special supervision [1][3] - Eight categories of ecological and environmental violations with clear illegal subjects and facts will be subject to special supervision to enhance the investigation and resolution of prominent ecological damage and environmental pollution issues [1][4] - The management measures for special supervision of ecological and environmental violations have been published, which require public disclosure of handling results and acceptance of public supervision [1][3] Group 2 - Major violations in the carbon market include failure to fulfill payment obligations, data falsification, illegal trading, and fraudulent qualifications of trading entities [3] - The Ministry of Ecology and Environment will conduct on-site inspections for cases proposed for special supervision and will issue notifications to relevant provincial ecological and environmental departments upon approval [4] - The special supervision process includes administrative penalties, orders for correction, and potential criminal referrals for serious violations [4][5]