Core Viewpoint - The Ministry of Ecology and Environment is developing a quota allocation plan for the national carbon emissions trading market for the steel, cement, and aluminum smelting industries for the years 2024 and 2025, considering various factors such as economic development and historical emissions [1][2] Group 1: Quota Allocation Plan - The quota allocation plan is currently in the consultation phase, with input being sought from relevant parties [1] - The plan aims to align with national greenhouse gas emission control targets and will consider factors like industry development stages and market needs [2] - The allocation will be based on a gradual approach, focusing on major emitting enterprises and processes, with free allocation of quotas for 2024 and 2025 based on carbon emissions per unit output [2][5] Group 2: Industry Emissions and Market Dynamics - The steel industry accounts for 15% of the national carbon emissions, making it the highest-emitting sector in manufacturing [4] - The plan encourages a competitive market environment, rewarding companies with lower carbon emissions and promoting the adoption of green technologies [4] - The allocation method will differ by industry: steel will be based on enterprises, cement on clinker production lines, and aluminum on electrolysis processes, covering direct emissions only [5] Group 3: Market Performance and Statistics - As of September 2025, China's carbon emissions trading market has become the largest globally, covering over 60% of national emissions, with a cumulative trading volume of 714 million tons and a total transaction value of 48.961 billion yuan [6]

Core Viewpoint - The allocation of carbon emission quotas for the steel, cement, and aluminum smelting industries in the national carbon trading market for 2024 and 2025 is being developed, linking the quota amount to actual production levels in 2025 [1][5] Group 1: Quota Allocation Plan - The "Quota Plan" considers factors such as national greenhouse gas emission control targets, economic and social development, industry development stages, historical emission data, market regulation needs, technological innovation, and carbon emission data management to scientifically formulate the total quota and distribution plan [2] - The quota distribution will be implemented gradually, focusing on major emitting enterprises and processes, with free allocation based on carbon emissions per unit of output for 2024 and 2025 [2][5] Group 2: Industry Emission Characteristics - The steel industry accounts for 15% of the national total carbon emissions, making it the highest-emitting sector in manufacturing [4] - The allocation of quotas will be based on specific industry characteristics: steel based on enterprises, cement based on clinker production lines, and aluminum smelting based on aluminum electrolysis processes [5] Group 3: Market Environment and Management - The plan aims to create a fair, competitive, and open market environment, encouraging companies to improve carbon emission management and adopt green low-carbon technologies [4] - The carbon market has been established as the largest globally, covering over 60% of national carbon emissions, with a cumulative transaction volume of 714 million tons and a transaction value of 48.961 billion yuan as of September 2025 [6]

Core Viewpoint - The Ministry of Ecology and Environment has included the steel, cement, and aluminum smelting industries in the national carbon emissions trading market management, aiming to enhance carbon reduction efforts and achieve carbon peak and carbon neutrality goals [1][3]. Group 1: Overall Requirements - The allocation plan for carbon emission quotas is based on national greenhouse gas emission control targets and considers various factors such as economic development, industry development stages, historical emissions, and technological innovation [3][4]. - The quota distribution will be conducted gradually, focusing on major emitting enterprises and processes, with free allocation based on carbon emissions per unit of output for the years 2024 and 2025 [3][4]. Group 2: Quota Distribution Scope - The plan applies to key emission units in the steel, cement, and aluminum smelting industries for the years 2024 and 2025, excluding newly established units and those that have ceased operations before quota determination [5]. - The greenhouse gases covered include CO2 for steel and cement, and CO2, CF4, and C2F6 for aluminum smelting, with specific calculations for global warming potential [5]. Group 3: Quota Calculation Method - For 2024, the quotas for key emission units will equal their verified actual carbon emissions, while specific conditions apply for the cement industry in 2025 [6][7]. - The calculation method for quotas involves determining the carbon emissions of steel enterprises, cement production lines, and aluminum electrolysis processes, with a focus on balancing industry profits and losses [8][9]. Group 4: Quota Issuance - The pre-allocation of quotas for 2025 will be based on 70% of the verified emissions from the previous year, with specific procedures for reporting and issuing quotas to key emission units [22][23]. - The quota issuance will be managed by provincial ecological environment authorities, with adjustments made based on compliance and verification results [25][26]. Group 5: Quota Compliance - Key emission units must clear their quotas by December 31 each year based on their verified emissions, with provisions for using certified voluntary emission reductions (CCER) to offset their obligations [27][28]. - The compliance process includes support for units facing difficulties in purchasing quotas, ensuring they can meet their obligations [28].

Core Viewpoint - The steel, cement, and aluminum smelting industries have been included in the national carbon emissions trading market management, with a focus on quota allocation for 2024 and 2025 [1] Group 1: Industry Inclusion and Regulation - The inclusion of steel, cement, and aluminum smelting industries in the carbon emissions trading market has been approved by the State Council [1] - The Ministry of Ecology and Environment has prepared a draft for public consultation regarding the total quota and allocation plan for these industries for the years 2024 and 2025 [1] Group 2: Quota Allocation Strategy - The quota allocation will follow a gradual approach, focusing on major emitting enterprises and processes [1] - Quotas for 2024 and 2025 will be allocated for free, based on carbon emissions per unit of output, similar to the method used in the power generation sector [1] Group 3: Market Environment and Policy Direction - The policy aims to create a fair, competitive, and open market environment, emphasizing the importance of market mechanisms in resource allocation [1] - The guiding principle is to "incentivize the advanced and spur the laggards," where lower carbon emissions per unit output will result in higher quota surplus rates [1] - The initiative encourages enterprises to enhance carbon emissions management and adopt green low-carbon technologies, including energy efficiency improvements and alternative raw materials [1]

Core Viewpoint - China has established the world's largest carbon emissions trading market, which is now operating steadily, covering over 60% of the country's carbon emissions, and is entering a new phase of development [1][2]. Market Development - The national carbon emissions trading market has seen steady progress since its pilot phase began in 2011, with the official launch occurring in 2017, following a phased approach [1][3]. - The cumulative trading volume of the national carbon market reached nearly 700 million tons by the end of August [1]. Policy Framework - The issuance of the "Opinions" document aims to enhance the effectiveness, vitality, and international influence of the national carbon market, while also coordinating with local pilot markets [2][3]. - Key tasks include aligning the national carbon market with the national carbon emission control measures, introducing paid allocation of quotas, and strengthening management of registration and trading institutions [2]. Market Structure - The national carbon market consists of a mandatory carbon market and a voluntary carbon market, which operate independently but complement each other [3][5]. - The mandatory market is expected to control over 70% of national carbon emissions, while the voluntary market can help reduce emissions not covered by the mandatory market [3]. Impact on Enterprises - The carbon market creates a consensus among enterprises that "carbon emissions have costs, and carbon reduction has benefits," allowing companies to manage their emissions more effectively [5][6]. - Companies can purchase carbon allowances at lower prices than their own reduction costs, minimizing operational impacts while incentivizing additional reductions when it is economically beneficial [5]. Regulatory Framework - A multi-level and relatively complete regulatory system for the carbon market has begun to take shape, with over 30 regulations and technical standards established [6][7]. - The upcoming "Interim Regulations on Carbon Emission Trading" will clarify responsibilities for companies regarding carbon emissions reporting and compliance [6]. Quota Management - The "Opinions" propose a gradual shift from intensity control to total volume control, prioritizing industries with stable carbon emissions for quota management by 2027 [7]. - Setting total quotas requires careful consideration of national carbon reduction goals and future economic trends [7]. Emission Accounting - Improving the carbon emission accounting system involves ensuring data quality from key emitters and third-party verification agencies, optimizing accounting methods, and enhancing measurement techniques [7][8]. Pricing Mechanism - Factors influencing carbon pricing include national carbon reduction targets and the development of low-carbon technologies [8]. - The pricing mechanism should reflect market dynamics while ensuring effective government regulation through quota allocation and market rules [8].

Core Viewpoints - Aluminum oxide futures are experiencing downward pressure due to high operational capacity and accumulating inventories, leading to a supply surplus [1][2] - The market is expected to maintain low-level fluctuations influenced by weak demand and high supply [1][2] - Short-term strategies suggest a wait-and-see approach, monitoring macroeconomic sentiments and supply-side policies [2] Group 1: Market Conditions - The operational capacity for aluminum oxide is at a historical high, nearing 98 million tons per year, contributing to a clear supply surplus [1] - Social and factory inventories are continuously accumulating, indicating a persistent oversupply situation [1] - Downstream electrolytic aluminum plants are maintaining high operating rates due to strong profits, but overall demand is underperforming expectations [1] Group 2: Price Outlook - The price of aluminum oxide is currently reported at 2922.0 yuan, with a slight decline of 0.17% [1] - Future price movements may be constrained by cost support, limiting the extent of potential declines [1] - The market is likely to remain under pressure from inventory accumulation, supply expansion, and weak demand, with potential price stabilization if production cuts are triggered by cost line breaches [1][2] Group 3: Strategic Recommendations - Companies are advised to adopt a cautious stance in the short term, awaiting further developments in macroeconomic conditions and supply-side policies [2] - The reference operational range for the main contract AO2601 is suggested to be between 2800-3100 yuan per ton [2] - Continuous monitoring of geopolitical events, particularly in Guinea, and U.S. Federal Reserve monetary policy is recommended as they may impact market dynamics [2]

Core Points - China announced a new round of Nationally Determined Contributions (NDC) at the UN Climate Change Summit, aiming for a 7%-10% reduction in greenhouse gas emissions by 2035, with non-fossil energy consumption exceeding 30% of total energy consumption [1][3] - The national carbon market has been operational for over four years, covering more than 2,200 key emission units in the power sector, making it the largest carbon market globally [3][4] - The carbon market's trading volume reached nearly 700 million tons with a transaction value of approximately 48 billion RMB by the end of August 2024, marking a record high since its inception [4][6] Carbon Market Development - The carbon market has seen significant growth, with a 44% increase in daily average transaction volume in 2024 compared to the previous compliance cycle, and a total transaction value of 18 billion RMB [6][4] - The market aims to expand its coverage to include major industrial sectors by 2027, with a focus on implementing total quota control for stable emission sectors [6][7] - New industries, including steel, cement, and aluminum smelting, will be included in the carbon market by 2025, increasing the controlled greenhouse gas emissions by approximately 3 billion tons [10][9] Future Expectations - The Chinese government plans to enhance the carbon market's mechanisms and expand its coverage to additional sectors such as aviation, petrochemicals, and paper manufacturing [9][10] - There is an emphasis on international cooperation and the establishment of cross-border carbon trading systems, with expectations for the upcoming COP30 to facilitate global climate governance [13][15] - The carbon market is seen as a critical tool for achieving carbon neutrality and is expected to play a significant role in the global carbon pricing landscape [6][14]

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - For the stock index, after a continuous rise, high - risk sectors like AI are showing divergence. The market risk preference has decreased, and the short - term index faces uncertainty. However, in the long - term, the policy supports the capital market, and the main idea is to go long on dips [4]. - Regarding national debt, in August, economic data continued to slow down. The "anti - involution" policy led to a price increase, but the export may face pressure. The central bank maintains a loose attitude towards funds. Interest rates are expected to decline, and the bond market may oscillate and recover in the short - term [7]. - For precious metals, after the Fed's interest - rate cut in September, key figures' monetary policy statements are dovish. It is recommended to go long on dips [10]. - In the non - ferrous metals sector, although the Fed's statements are less dovish than expected, if the interest - rate cut progresses, market sentiment may not be significantly suppressed. Each metal has its own supply - demand situation, and short - term price trends vary [13][15][17]. - In the black building materials sector, steel prices may fall if demand fails to recover. Iron ore prices will oscillate. Glass may be bullish in the short - term, while soda ash will continue to oscillate. The black sector may face a short - term correction but may have long - term multi - allocation value [33][36][38][39][44]. - In the energy and chemical sector, rubber is recommended to be observed after the holiday. Crude oil is recommended for multi - allocation. Methanol and urea can be considered for long positions on dips. Other chemical products have different supply - demand and price trends [55][57][59][60]. - For agricultural products, the short - term trends of different products such as pigs, eggs, and grains vary, and corresponding trading strategies are provided according to their supply - demand situations [80][82][84]. Summary by Directory Stock Index - **Market Information**: The state is studying measures to standardize copper smelting capacity construction. The total scale of public funds has exceeded 36 trillion yuan. The China Foreign Exchange Trade System has optimized the "Swap Connect" mechanism. Shangwei New Materials will be suspended for verification [2]. - **Basis Ratio**: The basis ratios of IF, IC, IM, and IH for different periods are provided [3]. - **Strategy**: After a continuous rise, high - risk sectors are showing divergence. The short - term index faces uncertainty, but the long - term is bullish on dips [4]. National Debt - **Market Information**: On Thursday, the main contracts of TL, T, TF, and TS had different price changes. The central bank's deputy governor proposed measures to expand the application scenarios of the Hong Kong RMB bond market [5]. - **Liquidity**: The central bank conducted 4835 billion yuan of 7 - day reverse repurchase operations on Thursday, with a net withdrawal of 35 billion yuan [6]. - **Strategy**: Economic data in August was weak. The "anti - involution" policy affected exports. The central bank maintains a loose attitude towards funds. Interest rates are expected to decline, and the bond market may oscillate and recover in the short - term [7]. Precious Metals - **Market Information**: Domestic and foreign gold and silver prices rose. US economic data exceeded expectations, and the market's recession expectation eased. Fed Chairman Powell's statement implied possible policy adjustments [8][9]. - **Strategy**: After the Fed's interest - rate cut in September, key figures' statements are dovish. It is recommended to go long on dips [10]. Non - Ferrous Metals Copper - **Market Information**: Due to strong US employment and durable goods data, the US dollar index rebounded, and copper prices fell back. LME and domestic copper inventories changed, and the import loss of domestic copper spot increased [12]. - **Strategy**: The Fed's hawkish statement may put short - term pressure on sentiment, but if the interest - rate cut progresses, copper prices are expected to be strong in the short - term [13]. Aluminum - **Market Information**: Domestic social inventories decreased, and aluminum prices stabilized and rebounded. LME aluminum inventories decreased, and the basis changed [14]. - **Strategy**: Although the Fed's statement is less dovish than expected, aluminum prices have strong support below as the holiday approaches [15]. Zinc - **Market Information**: The Shanghai zinc index rose. Domestic and foreign zinc inventories decreased, and the Shanghai - London ratio weakened [16][17]. - **Strategy**: The surplus of zinc ore has eased. After the Fed's interest - rate cut, the sentiment of the non - ferrous metals sector cooled. It is expected that Shanghai zinc will be weak in the short - term [17]. Lead - **Market Information**: The Shanghai lead index rose. Domestic and foreign lead inventories decreased, and the basis changed [18]. - **Strategy**: The shortage of raw materials suppresses the start - up of primary smelting, while the start - up of secondary smelting recovers. Downstream demand increases, and it is expected that Shanghai lead will be strong in the short - term [19]. Nickel - **Market Information**: Nickel prices oscillated. The cost of nickel ore and nickel iron was stable, and the price of MHP increased slightly [20]. - **Strategy**: Although refined nickel inventory pressure drags down nickel prices, in the long - term, there are positive factors. It is recommended to go long on dips [20]. Tin - **Market Information**: The Shanghai tin main contract rose. Domestic and foreign inventories changed. The supply of tin concentrate was tight, and demand was in the peak season [21]. - **Strategy**: The short - term supply - demand of tin is in a tight balance. It is recommended to observe, and the price will continue to oscillate [22]. Carbonate Lithium - **Market Information**: The spot index of carbonate lithium rose, and the futures price also increased [23]. - **Strategy**: The fundamentals of carbonate lithium remain the same. The spot is tight in the peak season, but the supply increase expectation suppresses the upside. It is expected to oscillate and adjust [23]. Alumina - **Market Information**: The alumina index rose. Due to a strike in Guinea, the supply risk of ore increased, and the import window opened [24]. - **Strategy**: Overseas ore disturbances may have a limited short - term impact. The over - capacity pattern in the smelting end is difficult to change. It is recommended to observe [26]. Stainless Steel - **Market Information**: The stainless - steel main contract rose. Spot prices were stable, and inventory decreased [27]. - **Strategy**: Domestic steel mills have a strong willingness to support prices, but consumption has not improved significantly. It is expected to oscillate in the short - term [28]. Cast Aluminum Alloy - **Market Information**: The AD2511 contract rose. The downstream is in the process of transitioning from the off - season to the peak season, and inventory changes [29]. - **Strategy**: The peak - season characteristics are not obvious, and there is delivery pressure. The price is supported by the cost of scrap aluminum [30]. Black Building Materials Steel - **Market Information**: The prices of rebar and hot - rolled coil rose slightly. The registered warehouse receipts and positions of the main contracts changed [32]. - **Strategy**: The commodity market was positive, but the demand for steel was weak. If demand fails to recover, steel prices may fall [33]. Iron Ore - **Market Information**: The main contract of iron ore rose. The spot price and basis changed [34]. - **Strategy**: Overseas iron - ore shipments decreased, and demand increased. Port and steel - mill inventories changed. Iron - ore prices will oscillate [35][36]. Glass and Soda Ash - **Glass Market Information**: The glass main contract rose. Spot prices increased, and inventory decreased [37]. - **Glass Strategy**: Six departments banned new flat - glass production capacity, and prices rose in the short - term. However, demand is weak. It is recommended to be bullish in the short - term [38]. - **Soda Ash Market Information**: The soda - ash main contract rose. Spot prices increased, and inventory decreased [39]. - **Soda Ash Strategy**: The domestic soda - ash market is stable, with limited price fluctuations. It is expected to continue to oscillate in the short - term [39]. Manganese Silicon and Ferrosilicon - **Market Information**: The prices of manganese silicon and ferrosilicon rose. The market was affected by policies [40][41][42]. - **Strategy**: The Fed's interest - rate cut and "anti - involution" sentiment affect the black sector. Although there is a short - term correction risk, there may be long - term multi - allocation value [43][44]. Industrial Silicon and Polysilicon - **Industrial Silicon Market Information**: The price of industrial silicon rose. The spot price and basis changed [45]. - **Industrial Silicon Strategy**: The supply - demand of industrial silicon has not changed significantly. The price is expected to oscillate, and attention should be paid to supply - demand and policy changes [46][47]. - **Polysilicon Market Information**: The price of polysilicon was stable. The spot price and basis changed [48]. - **Polysilicon Strategy**: The polysilicon price is affected by policies and fundamentals. It is expected to oscillate, and there is a risk of decline if expectations are not met [49]. Energy and Chemical Rubber - **Market Information**: Rubber prices were weak. There were factors such as expected state reserves release, changes in the position structure, and weather impacts [51]. - **Strategy**: In the medium - term, it is a long - term idea. In the short - term, it is recommended to observe and look for opportunities after the holiday [55]. Crude Oil - **Market Information**: The prices of INE crude oil and related refined products rose. US inventory data changed [56]. - **Strategy**: It is recommended for multi - allocation, as the current price is supported by fundamentals, and there is upside potential if geopolitical premiums return [57]. Methanol - **Market Information**: The price of methanol changed. The basis and spread changed [58][59]. - **Strategy**: The supply is expected to increase, and the demand has improved. The inventory has decreased. It is recommended to go long on dips [59]. Urea - **Market Information**: The price of urea was stable. The basis and spread changed [60]. - **Strategy**: The supply pressure has increased, and the demand is average. It is recommended to go long on dips at low prices [60]. Pure Benzene and Styrene - **Market Information**: The price of pure benzene was stable, and the price of styrene rose. The basis and spread changed [61]. - **Strategy**: The BZN spread has room for upward repair. The price of styrene may stop falling [62]. PVC - **Market Information**: The price of PVC rose. The cost, supply, and demand changed, and inventory changed [63][64]. - **Strategy**: The supply is strong, and the demand is weak. The export expectation is weak. It is recommended to short on rallies [65]. Ethylene Glycol - **Market Information**: The price of ethylene glycol rose. The supply, demand, and inventory changed [66]. - **Strategy**: The supply is high, and the inventory is expected to increase in the medium - term. It is recommended to short on rallies, but beware of risks [67]. PTA - **Market Information**: The price of PTA rose. The supply, demand, and inventory changed [68]. - **Strategy**: The supply has unexpected maintenance, and the inventory is decreasing. The demand is under pressure. It is recommended to observe [69][70]. Para - Xylene - **Market Information**: The price of PX rose. The supply, demand, and inventory changed [71]. - **Strategy**: The PX load is high, and the downstream PTA has maintenance. It is expected to accumulate inventory. It is recommended to observe [72]. Polyethylene (PE) - **Market Information**: The price of PE rose. The supply, demand, and inventory changed [73]. - **Strategy**: The market expects favorable policies. The price may oscillate upward [74]. Polypropylene (PP) - **Market Information**: The price of PP rose. The supply, demand, and inventory changed [75][76]. - **Strategy**: The supply pressure is high, and the demand is seasonally rebounding. The inventory pressure is high. There is no obvious short - term contradiction [77]. Agricultural Products Pig - **Market Information**: The domestic pig price mainly fell. The supply exceeded demand before the holiday [79]. - **Strategy**: The spot price is falling, and the futures price is expected to be weak. It is recommended to short the near - month contract and conduct reverse arbitrage [80]. Egg - **Market Information**: The national egg price was stable with a few declines. The supply was stable, and the demand was weak [81]. - **Strategy**: The spot price is expected to fall, and the near - month futures price is weak. It is recommended to observe in the short - term and buy the far - month contract after a decline [82]. Soybean Meal and Rapeseed Meal - **Market Information**: The price of US soybeans rose slightly. The domestic soybean - meal price and inventory changed. Argentina's export tax policy affected the market [83]. - **Strategy**: The domestic supply pressure is high, and the global supply is loose. It is expected to oscillate, and it is recommended to short on rallies [84]. Edible Oils - **Market Information**: The exports and production of Malaysian palm oil changed. Indonesia's palm - oil data changed. India bought a large amount of soybean oil. Domestic oil prices rebounded [85][86]. - **Strategy**: The low inventory in India and Southeast Asia, and the expected increase in demand support the oil price. It is expected to oscillate strongly in the medium - term. It is recommended to buy on dips [87]. Sugar - **Market Information**: The Zhengzhou sugar futures price fell back. The production of major sugar - producing countries is expected to increase [88]. - **Strategy**: Affected by imports and production increases, the sugar price is expected to fall. It is recommended to observe before the National Day [89]. Cotton - **Market Information**: The Zhengzhou cotton futures price was weak. The spot price and inventory changed [90]. - **Strategy**: The downstream start - up rate is weak, and there is an expected increase in production. The price is expected to be weak in the short - term, but there is support below. It is recommended to observe [91].

Core Insights - The national carbon market in China has become the largest carbon trading market globally, covering a significant portion of greenhouse gas emissions [1][4] - The cumulative transaction volume of the carbon market has exceeded 49 billion yuan, with nearly 720 million tons of carbon allowances traded [2] - The market has expanded its coverage to include industries such as steel, cement, and aluminum, effectively managing over 60% of the country's carbon dioxide emissions [2] Group 1: Market Performance - The carbon market's trading scale reached a historical high since 2024, indicating increased market vitality [2] - The "waste-to-energy" system implemented in the cement industry can consume over 150,000 tons of solid waste annually, reducing carbon emissions by approximately 300,000 tons [2] Group 2: Policy and Strategic Development - A central document was issued in August to accelerate the construction of a unified national carbon market, outlining key tasks and action plans [3] - The national carbon market conference serves as a platform to share China's experiences with emerging economies, promoting the adoption of carbon market mechanisms for green development [3] Group 3: International Recognition - The achievements of China's carbon market have been recognized by international guests, highlighting its role in optimizing resource allocation and guiding industry emissions reductions [4] - The European Union has expressed admiration for China's leadership in green transformation and renewable energy deployment [5] - International organizations acknowledge China's positive experiences in green development, which inspire confidence in global emission reduction efforts [6]

Core Points - China announced new national contribution targets at the UN Climate Change Summit, aiming for a 7%-10% reduction in greenhouse gas emissions by 2035, with non-fossil energy consumption exceeding 30% of total energy consumption [1] - The total installed capacity for wind and solar power is targeted to exceed 360 million kilowatts, which is more than six times the capacity in 2020 [1] - The new targets reflect China's commitment to global climate governance and are a strategic continuation of its domestic "dual carbon" process [1] Group 1 - As of August 2023, China's total installed capacity for wind and solar power surpassed 1.69 billion kilowatts, contributing 80% of new power installations since the start of the 14th Five-Year Plan [2] - To meet the new targets, nearly 2 billion kilowatts of new capacity must be added over the next decade, requiring an average annual increase of around 200 million kilowatts [2] - The development of wind and solar power is crucial for China to achieve its emission reduction goals and is supported by advancements in photovoltaic and wind power technology [2] Group 2 - The new targets are a scientific response to China's energy transition strategy, with expectations of continued economic growth and rising energy demands in various sectors [3] - By 2024, China's energy consumption per unit of GDP is expected to decrease by 11.6%, making it one of the fastest countries in terms of energy intensity reduction [3] - The new national contribution targets represent a revolutionary upgrade, covering all greenhouse gases and not just carbon dioxide emissions [3] Group 3 - The new targets provide a clear policy signal for the next decade, indicating a decoupling of economic growth from carbon emissions [4] - China's carbon market is expanding, with major industries like steel, cement, and aluminum already included, and plans to extend to petrochemical, chemical, and aviation sectors [4] - By 2027, the national carbon market is expected to cover the main emission industries in the industrial sector [4]