China's carbon market expands to steel, cement, aluminum, hits 961 million tons traded

China's national carbon market has now traded over 961 million metric tons of CO2 equivalent since its 2021 launch, with total turnover exceeding 65.7 billion yuan. In 2025 alone, the market saw a record 235 million tons traded, up 24.36% from the prior year. The market has expanded beyond power generation to include steel, cement, and aluminum smelting, covering around 8.3 billion tons of emissions, more than 65% of the national total. Preparatory work is underway to bring petrochemicals, chemicals, papermaking, and civil aviation into the system. The voluntary emissions reduction market is also growing, with 41 projects registered and cumulative trading volume of 21.71 million tons. China aims to cover all major industrial sectors by 2027 and expand the voluntary market to all key fields.