1. Report Industry Investment Rating - No relevant information provided 2. Core Viewpoints - In March 2026, the National Carbon Emission Trading Market (CEA) operated stably and further expanded. After the Ministry of Ecology and Environment officially included the steel, cement, and aluminum smelting industries in the national carbon market in February, the market sentiment was generally optimistic this month. However, due to the end - of - quarter compliance expectations and the progress of data verification in new industries, the price showed a high - level volatile consolidation trend [3][39]. - The CEA quota price fluctuated between 80.00 yuan/ton and 83.20 yuan/ton this month, maintaining overall resilience. The market activity rebounded compared to February, with a significant proportion of bulk agreement transactions, indicating that institutional investors and newly included industry entities were adjusting their positions [4][39]. - The core focus this month was on the implementation of the quota allocation plan details for the three high - energy - consuming industries (steel, cement, and aluminum) and the start of data verification work, which provided strong support for the medium - and long - term carbon price. As April enters the traditional compliance peak period and the data verification results of the three industries become clearer, market enthusiasm may further increase, and the price is expected to strengthen [4][41]. 3. Summary by Directory 3.1 Industry News - The expansion of the carbon market started substantially. In February 2026, the Ministry of Ecology and Environment officially included the steel, cement, and aluminum smelting industries in the national carbon market. In March, local ecological environment departments and third - party verification agencies launched the verification of the 2025 carbon emission data of key enterprises in these three industries. The first batch of quota allocation plans for new industries is expected to be announced in early Q2, which has increased the attention of relevant industrial chain enterprises to carbon assets [9]. - In March, the trading volume and price of the national voluntary greenhouse gas emission reduction market (CCER) increased. On March 19, the average CCER transaction price was about 87.02 yuan/ton, slightly higher than the CEA price, showing a small inversion or parity, indicating the scarcity of high - quality emission reduction projects. Afforestation carbon sequestration and renewable energy grid - connected power generation projects were still the main trading items [10]. - Pilot markets in Hubei, Guangdong, etc. were also actively traded this month. In mid - March, the price of the Hubei carbon market (HBEA) maintained a reasonable price difference with the national carbon market, with limited inter - regional arbitrage space, and the market was maturing [11]. 3.2 National Carbon Market Carbon Emission Quotas (CEA) - As of February 27, 2026, the closing price of the national carbon market carbon emission quota (CEA) was 79.90 yuan/ton, the same as the previous month and down 7.23% year - on - year. In the past 30 trading days, the highest CEA price was 83.20 yuan/ton, the lowest was 74.00 yuan/ton, with a fluctuation range of about 9 yuan/ton. In terms of trading volume, the trading activity of national carbon emission quotas decreased in the past 30 trading days, with the average monthly trading volume decreasing by 759,000 tons [12]. 3.3 Carbon Price Influence Factor Analysis 3.3.1 Energy Price - There is a certain correlation between the carbon emission market and the energy market. When energy demand is strong and energy prices rise, the demand for carbon emission quotas is also relatively strong. The increase in carbon price increases the economic efficiency of corporate low - carbon emission reduction, which helps reduce corporate energy demand. Affected by external geopolitical conflicts, the prices of thermal coal and natural gas increased [14]. 3.3.2 Energy Consumption - From January to December 2025, the total apparent consumption of gasoline, coal, and diesel in China was 37,671.13 million tons, 628.74 million tons less than the previous year [22]. 3.3.3 Domestic Carbon Emission Structure - No specific analysis content provided, only relevant figures are mentioned [29] 3.3.4 Total Social Electricity Consumption - In 2025, the total social electricity consumption was 1,036.82 billion kWh, a year - on - year increase of 5.0%. The electricity consumption of the primary industry was 14.94 billion kWh, a year - on - year increase of 9.9%; the secondary industry was 663.66 billion kWh, a year - on - year increase of 3.7%; the tertiary industry was 199.42 billion kWh, a year - on - year increase of 8.2%; and the electricity consumption of urban and rural residents was 158.80 billion kWh, a year - on - year increase of 6.3%. The electricity consumption of the tertiary industry and urban and rural residents contributed 50% to the growth of electricity consumption. The growth rates of electricity consumption in the charging and battery - swapping service industry and the information transmission, software, and information technology service industry reached 48.8% and 17.0% respectively, which were important factors driving the growth of tertiary - industry electricity consumption. The slowdown in the growth rate of secondary - industry electricity consumption was in line with China's economic structural transformation [33]. 3.3.5 Power Generation Structure - From January to February 2026, the proportion of thermal power generation was 67.05%, slightly lower than the same period last year; the proportion of hydropower generation was 93%, slightly higher than the same period last year; and wind power generation was 194.64 billion kWh, also higher than last year [38]. 3.4 Conclusion - In March 2026, the National Carbon Emission Trading Market (CEA) operated stably and further expanded. The market sentiment was generally optimistic, but the price showed a high - level volatile consolidation trend. The CEA quota price fluctuated between 80.00 yuan/ton and 83.20 yuan/ton, maintaining overall resilience. The market activity rebounded compared to February, with a significant proportion of bulk agreement transactions. The implementation of the quota allocation plan details for the three high - energy - consuming industries and the start of data verification work provided strong support for the medium - and long - term carbon price. As April enters the traditional compliance peak period and the data verification results of the three industries become clearer, market enthusiasm may further increase, and the price is expected to strengthen [39][41].

Core Viewpoint - China aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality by 2060, marking a significant commitment to green transformation and sustainable development [1][2]. Financial Sector's Role - The financial sector is crucial in facilitating resource allocation and addressing financing challenges for green projects, with green credit surpassing 42 trillion yuan and green bond issuance ranking among the highest globally [1][3]. - Financial innovations and policies have been implemented to support the "dual carbon" goals, including the establishment of a comprehensive financial support framework [3][5]. Funding Requirements - From 2024 to 2030, China's total funding requirement for climate change mitigation and adaptation is approximately 25.2 trillion yuan, averaging about 3.6 trillion yuan annually; from 2031 to 2060, the requirement is around 243 trillion yuan, averaging about 8.1 trillion yuan annually [2]. Policy Framework - A robust policy framework has been established, including key documents that outline financial support for green development, providing clear strategic guidance for market participants [3][4]. - The introduction of standards and guidelines has enhanced transparency and accountability in green finance, preventing greenwashing practices [4][5]. Market Practices - Green credit has become a vital tool for financing energy efficiency and renewable energy projects, with a reported balance of 42.39 trillion yuan in green loans as of mid-2025, reflecting a 14.4% increase from the beginning of the year [6][7]. - The issuance of green bonds and sustainable development-linked bonds has enabled companies to raise funds specifically for low-carbon projects, linking financial incentives to emission reduction targets [7][8]. Carbon Market Development - China's carbon trading market has rapidly expanded since its launch, becoming the largest in the world by greenhouse gas emissions coverage, with a cumulative trading volume of 715 million tons and a transaction value of 49.04 billion yuan [9]. - The integration of carbon markets with other financial instruments is essential for maximizing the effectiveness of green finance and ensuring that emission reductions are economically viable [9][10]. Future Challenges and Directions - Despite progress, challenges remain in matching funding supply with project demand, developing risk pricing mechanisms, and enhancing collaboration across financial tools [10][11]. - Future efforts should focus on innovating financial products, improving resource matching, and fostering international cooperation to strengthen the green finance ecosystem [11][12].