China national carbon market trading volume rises 37 percent in first half of 2026

China's national carbon market saw a 37 percent year-on-year increase in trading volume during the first half of 2026, with 52.96 million metric tons of carbon emission allowances changing hands. Total trading since the market launched in 2021 has surpassed 917 million tons, valued at over 61.7 billion yuan or about 9.1 billion U.S. dollars, according to the Ministry of Ecology and Environment. The market, initially covering 2,162 coal-fired power companies, expanded last year to include 3,378 firms in the steel, cement, and electrolytic aluminum sectors. It now covers more than 65 percent of China's total carbon dioxide emissions. Officials say the coal-fired power sector alone cut 530 million tons of carbon during the 14th Five-Year Plan period, with 80 percent of companies reducing emissions per unit of electricity. The growth signals that China's carbon pricing mechanism is gaining traction as a tool for industrial decarbonization. The expansion to heavy industry sectors is a key development for global carbon market observers.