China carbon market hits record transaction volumes

At the 2026 China Carbon Market Conference in Wuhan, officials reported that China's national carbon market has reached record-high transaction volumes. Li Gao, Vice Minister of Ecology and Environment, stated that the market now covers four industries and 3,680 key emission units, managing approximately 8.3 billion tons of CO2 emissions. This represents over 65% of the nation's total carbon emissions, making it the largest greenhouse gas trading market globally.

In 2025, the market expanded to include the steel, cement, and aluminum smelting sectors. As of August 2026, cumulative carbon quota transactions reached 961 million tons, with a total value of 65.699 billion yuan. The voluntary emission reduction market has also seen growth, with over 24 million tons of certified reductions traded.

In Hubei province, new initiatives are integrating carbon, electricity, and financial markets. State Grid Hubei Electric Power is utilizing hourly carbon factor calculations to help enterprises optimize production and access green financing. Programs such as the ‘electricity-carbon time-of-use loan’ link interest rates to a company's carbon footprint, rewarding low-carbon production with lower financing costs. Additionally, the ‘E-Electricity Carbon Inclusion’ platform has been launched to help businesses and residents convert low-carbon behaviors into carbon credits.