China National Carbon Market Trading Surges 37% in First Half of 2026 | carboncredit.io

China's national carbon market saw trading volume rise 37% year-on-year in the first half of 2026, with 52.96 million metric tons of allowances exchanged. Total cumulative trading has exceeded 917 million tons worth over 61.7 billion yuan ($9.1 billion), according to the Ministry of Ecology and Environment. The market, launched in 2021, now covers 3,378 companies across coal power, steel, cement, and electrolytic aluminum sectors, representing over 65% of China's CO2 emissions. The coal power sector alone cut 530 million metric tons of carbon during the 14th Five-Year Plan period, with 80% of enterprises reducing emissions per unit of electricity. Carbon trading allows firms to buy or sell surplus allowances based on emission benchmarks, creating a financial incentive for efficiency. The expansion to heavy industry sectors marks a significant step in China's carbon pricing strategy. This growth signals increasing market maturity and compliance pressure on high-emitting industries. For carbon market observers, the key metrics are the rising trading volume and the expanding sector coverage, which could drive further decarbonization in China's industrial base.