(Source: China Industrial News Network 2025-11-11)
Dong Xiucheng
Since the opening of the national carbon market in July 2021, China's carbon emission control system has been gradually established, with the power generation industry being the first to be included in the system. By 2025, the system will be further expanded to three high-emission industries including steel, cement, and aluminum smelting. Judging from the new round of independent contribution target commitments, China's national carbon emissions trading market will cover major high-emission industries in 2035, which is highly consistent with the overall greenhouse gas emission control goals.
What are the high-emission industries in China
China’s eight major carbon-emitting industries lead 75% of the country’s total greenhouse gas emissions. China's high-emission industries mainly include electricity, steel, cement, etc. These industries are key control targets to achieve the "double carbon" goal.
1. Electric power industry
China’s electricity supply is dominated by thermal power. Coal combustion produces a large amount of carbon dioxide. Carbon emissions from this industry account for about 40% of the country’s total carbon emissions, making it the largest carbon emitter.
2.Steel industry
China's steel is mainly based on long-process production technology, which requires coal as energy and coke as reducing agent to assist smelting. The intensity of carbon emissions is high, and its carbon emissions account for about 15% of the country's total carbon emissions.
3. Cement industry
The clinker calcination process in the cement production process consumes a lot of energy and produces a large amount of carbon dioxide. Its carbon emissions account for about 9% of the country's total carbon emissions.
4. Aluminum smelting industry
Belongs to the non-ferrous metal industry. Electricity consumption and perfluorocarbon emissions in the production process of electrolytic aluminum are the main sources of carbon emissions, accounting for approximately 5% of the country's total carbon emissions.
5.Chemical industry
Including basic chemical raw material manufacturing, fertilizer manufacturing and other sub-industries. The production process consumes a lot of energy and emits a variety of harmful gases and chemical substances. It is also one of the high-emitting industries.
6.Petrochemical industry
Including oil refining, ethylene production, etc., the energy consumption is high, and a large amount of greenhouse gases such as carbon dioxide and other pollutants will be produced during the production process.
7. Paper industry
The pulping and papermaking process requires a large amount of energy and water resources, and produces wastewater and waste gas, etc., which is a high-emission industry.
8. Aviation industry
Aircraft operations mainly rely on aviation fuel. The combustion of fuel will emit a large amount of greenhouse gases such as carbon dioxide. Although its proportion in the country's total carbon emissions is smaller than that of the above-mentioned industries, it is also a high-emission field that cannot be ignored.
Development status of China’s carbon market
China’s carbon market is developing well and has made significant progress in terms of market size, policies and regulations, and market vitality.
1. The market scale is gradually expanding
The coverage of China’s carbon market continues to expand, and the proportion of total carbon dioxide emissions under effective control exceeds 60%. The scale of the national carbon emissions trading market has reached a record high. The average daily trading volume in 2024 has increased by approximately 44% compared with the previous compliance cycle, and the annual transaction volume is 18 billion yuan, the highest level since the launch of the market in 2021.
2. Policies and regulations are increasingly improving
In 2023, the State Council promulgated and implemented the "Interim Regulations on the Management of Carbon Emissions Trading", establishing a basic framework of policies and regulations for the national carbon emissions trading market. In August 2025, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Opinions on Promoting Green and Low-Carbon Transformation and Strengthening the Construction of the National Carbon Market", which clarified the timetable and roadmap for the medium- and long-term development of the national carbon market, and proposed that by 2030, a national carbon emissions trading market based on total quota control and combining free and paid allocation will be basically established.
3. Market vitality continues to increase
The willingness of trading entities to participate continues to increase. A total of 2,096 key emission units will be included in the national carbon emissions trading market in 2024, and the quota payment completion rate is close to 100%. At the same time, the "Opinions on Promoting Green and Low-Carbon Transformation and Strengthening the Construction of the National Carbon Market" proposes to support banks and other financial institutions in standardizing carbon pledge financing. The national voluntary greenhouse gas emission reduction trading market will gradually introduce qualified natural persons to participate in transactions, which will further expand trading entities and enhance market vitality.
4. The transaction price is gradually reasonable
The carbon price once exceeded 100 yuan/ton and stabilized at around 72 yuan/ton, and has gradually begun to play a guiding role in resource allocation. The average transaction price in the national carbon emissions trading market in 2024 is 96 yuan/ton, a year-on-year increase of 41%, which basically reflects the market supply and demand relationship. 5. Expansion of industry coverage
The national carbon market starts from the power generation industry and gradually expands to high energy-consuming industries such as steel, cement, and electrolytic aluminum. As of the end of July 2025, the national mandatory carbon market had a cumulative trading volume of 681 million tons and a turnover of 46.784 billion yuan, and its market influence continues to expand.
6. Technical support is more powerful
China implements monthly certification and auditing of key parameters of corporate carbon emissions, and uses informatization methods such as big data and blockchain to intelligently warn of data quality risks, greatly improving regulatory efficiency. In 2024, the number of non-compliant items in the verification of corporate greenhouse gas emission reports has decreased by approximately 24% year-on-year, and the number of problems discovered by local ecological environment authorities has decreased by approximately 30% compared with last year.
It is completely feasible for China’s national carbon emissions trading market to cover major high-emission industries in 2035
According to the "Opinions on Promoting Green and Low-Carbon Transformation and Strengthening the Construction of the National Carbon Market" jointly issued by the General Office of the CPC Central Committee and the General Office of the State Council, by 2027, major emission industries in the industrial sector will basically achieve the inclusion and control of carbon emissions. This policy orientation and advancement not only demonstrates the country's determination for green and low-carbon transformation, but also lays a solid foundation for achieving comprehensive coverage and effective control of major emission industries in the industrial sector.
In summary, according to the established policy path and promotion measures, China’s national carbon emissions trading market in 2035 will cover major high-emission industries, fully cover major emission industries in the industrial field, and achieve the goal of effective management and control. Its implementation process and goals are clear and feasible. This process is not only in line with the country's long-term development plan, but also an important measure to address the challenges of global climate change and achieve sustainable development goals.
（The author is the Executive Dean of the China International Carbon Neutral Economic Research Institute, w88 casino）
Attachment: Original link
https://www.cinn.cn/2025/11-11/gD7OyyaD.html
