Core Points - China is set to announce a comprehensive 2035 national contribution target covering all greenhouse gases, including methane, ahead of the UN Climate Change Conference [2] - Significant progress has been made in methane emission control in China, particularly in the coal sector, with improvements in emission standards and the introduction of market mechanisms [2][4] - The establishment of an integrated monitoring, reporting, and verification (MRV) system for methane emissions is a key focus for future development [7] Policy Developments - The "National Greenhouse Gas Emission Factor Database" was launched in January 2025, expanding the range of greenhouse gases monitored [4] - The number of methane reduction technologies in the "National Key Low-Carbon Technology Promotion Catalog" increased from 1 to 4, indicating a significant enhancement in available technologies [4] Emission Standards - New coalbed methane emission standards prohibit emissions from coal mines with methane concentrations above 8% and extraction rates above 10 cubic meters per minute, a significant tightening from the previous standard of 30% [5] - The implementation of these standards is expected to reduce methane emissions by approximately 50 million tons of CO2 equivalent annually [5] Sectoral Insights - In 2021, China's total methane emissions were approximately 60.645 million tons, with energy activities and agriculture being the primary sources, accounting for 86.5% of emissions [6] - The waste management sector has seen a decline in methane emissions due to changes in waste treatment methods [6] Technological Advancements - The development of a comprehensive MRV system is crucial for effective methane emission control, incorporating ground monitoring, drone, and satellite remote sensing technologies [7][8] - Satellite remote sensing has rapidly advanced, with various countries deploying satellites for methane monitoring, and China aims to enhance its capabilities in this area [8] Market Opportunities - The ongoing improvement of the national carbon market is expected to provide new profit growth points for methane resource utilization companies, promoting emission control and resource utilization [5]

Core Insights - The national carbon market in China is a government-led trading system aimed at reducing carbon emissions, officially launched on July 16, 2021, covering 2,225 enterprises in the power sector with an annual emission coverage of approximately 4.5 billion tons, making it the largest carbon trading market globally [1][2] Group 1: Key Terminology - Carbon Emission Allowance (CEA) allows companies to emit a specific amount of CO₂, where 1 allowance equals 1 ton of CO₂ equivalent (tCO₂e). Companies must hold enough allowances to cover their emissions by the end of the compliance period to avoid penalties [3][4] - Carbon Allowance refers to the emissions permits allocated to companies by the government, with a future trend of decreasing free allowances and increasing paid allowances to incentivize emission reductions [5] - Carbon Trading involves the buying and selling of carbon allowances or reduction credits, primarily through agreements, with potential future inclusion of financial instruments like futures and options [6] Group 2: Market Mechanisms - CCER (China Certified Emission Reduction) represents carbon credits generated from projects like renewable energy and forestry, which can offset up to 5% of a company's emissions [7] - The MRV (Monitoring, Reporting, Verification) system ensures the accuracy of carbon emission data, serving as the foundation for fair market operations [8] - Carbon Price is the market price for carbon allowances, currently ranging from 50 to 80 RMB per ton, significantly lower than the EU price of approximately 80 Euros per ton, with expectations of gradual increases as policies tighten [9][10] Group 3: Goals and Strategies - Peak Carbon refers to the point at which CO₂ emissions reach their highest level before beginning to decline, with China committing to achieve this by 2030 [11][12] - Carbon Neutrality aims for net-zero emissions by 2060 through emission reductions, carbon sinks, and technological innovations [15] - Carbon Sink involves natural processes, such as forests absorbing CO₂, which can be developed into carbon credit projects [16] Group 4: Financial and Regulatory Aspects - Carbon Finance encompasses financial innovations related to the carbon market, enhancing market liquidity and reducing compliance costs for companies [17] - Carbon Footprint measures the total carbon emissions produced directly or indirectly by individuals, companies, or products throughout their lifecycle [18] - Carbon Border Tax is a proposed tariff on high-carbon imports to balance domestic and international carbon costs, with potential implications for high-carbon exporting companies [19] Group 5: Monitoring and Verification - Carbon Monitoring utilizes technologies like sensors and satellites to track carbon emissions and greenhouse gas concentrations, with pilot projects already underway in 16 cities [20][21] - Carbon Accounting systematically quantifies carbon emissions for companies or products over a specific period, adhering to international standards [22] - Carbon Verification involves third-party audits of carbon emission reports to ensure data accuracy, a requirement for major emitters in the national carbon market [27]