Core Insights - The recent issuance of the "Opinions on Promoting Green and Low-Carbon Transition and Strengthening National Carbon Market Construction" marks a new phase in the development of China's carbon market, emphasizing its role as a crucial policy tool for addressing climate change and facilitating a comprehensive green transition in economic and social development [1][5]. Group 1: Carbon Market Development - The national carbon market has completed three compliance cycles, with a cumulative trading volume of 680 million tons and a transaction value of 47.41 billion RMB as of August 22, 2025, indicating a significant increase in market activity [1]. - The carbon market will expand to include the steel, cement, and aluminum industries starting in 2024, increasing the number of covered enterprises to approximately 3,600 and the annual carbon dioxide emissions covered to 800 million tons, which accounts for over 60% of the national total [2]. Group 2: Compliance and Emission Reduction - Power generation companies have shown a strong commitment to compliance, achieving a compliance rate of 99.98% in the third compliance cycle, reflecting a significant improvement in their awareness and management of carbon emissions [3][4]. - The carbon emissions per unit of electricity generated in the power sector have decreased by 12.1% from 2018 to 2024, demonstrating the effectiveness of the carbon market in promoting emission reductions [4]. Group 3: Transition in Carbon Allocation Mechanism - The shift from intensity-based control to total emissions control, along with the introduction of a mixed allocation method of free and paid carbon quotas, is expected to enhance the market's regulatory power and better reflect the actual costs of emissions for enterprises [5][6]. - This new allocation mechanism is anticipated to create a scarcity value for carbon quotas, encouraging companies to transition from passive compliance to proactive emission reduction strategies [7]. Group 4: Financial Mechanisms and Market Liquidity - The development of carbon finance is highlighted as a key mechanism for supporting green and low-carbon projects, with the potential to reduce economic risks for compliance enterprises and enhance the carbon price formation mechanism [11]. - The carbon market's turnover rate is projected to increase from 2.0% in 2023 to 3.5% in 2024, driven by policy adjustments such as the reduction of compliance cycles and the introduction of quota rollover mechanisms [12]. Group 5: Future Opportunities and Challenges - The tightening of quota benchmarks and rising carbon prices may increase compliance costs for power generation companies, leading to potential market imbalances and heightened financial risks [8]. - Companies are advised to adopt diversified carbon asset development strategies, including participation in green electricity and carbon credit projects, to mitigate risks and enhance long-term profitability [10].

Core Viewpoint - The national unified carbon market has established a dual-driven structure of mandatory carbon market and voluntary carbon market, with continuous expansion in trading scale and the development of a governance system where "carbon emissions have costs, and carbon reductions have benefits" [1] Group 1: Current Market Structure - The carbon market has developed into a dual structure consisting of a mandatory carbon emissions trading market and a voluntary greenhouse gas reduction trading market [1] - The trading scale is continuously expanding, indicating a growing demand for professional services related to carbon markets [1] Group 2: Challenges in Professional Services - Market demand has not been fully released due to limited coverage of the mandatory carbon market and a lack of strong willingness among enterprises to manage quotas effectively [2] - There is an uneven development of professional services, with some areas like calibration and verification being more mature than others such as carbon asset management and project development consulting [2] - The entry barriers in many service areas are low or unclear, leading to inconsistent service quality among institutions [2] Group 3: Opportunities for Growth - The transition towards a greener and low-carbon economy presents significant opportunities for the development of carbon market-related professional services [3] - Recommendations include enhancing industry support policies, expanding the scale of both mandatory and voluntary carbon markets, and fostering a robust ecosystem for low-carbon services [3] Group 4: Institutional Development - There is a need to cultivate a diverse matrix of service institutions to meet the varied demands of the carbon market and prevent homogenization of services [4] - Institutions should focus on upgrading their services in energy conservation, inspection, certification, and information technology to expand into carbon-related services [4] Group 5: Service Diversification - Emphasis on combining "soft services" and "hard services" to enhance the quality and diversity of professional services [4] - Development of new service scenarios such as carbon trading consultants and carbon financial advisors is encouraged to meet the evolving needs of the market [4] Group 6: Regulatory Mechanisms - Establishment of a comprehensive regulatory mechanism is essential to ensure the quality and standards of professional services in the carbon market [5][6] - Regular evaluations and the publication of service institution lists can help improve service quality and foster public oversight [6]