China's carbon market sees 460 million tons of greenhouse gas emissions traded in past three years

China's national carbon emissions trading market celebrated its third anniversary on Tuesday, marking a significant milestone in the country's efforts to combat global climate change.

According to the Ministry of Ecology and Environment, as of Monday, the market had seen a total trading volume of over 460 million tons of carbon emissions quotas and a total trading value of nearly 27 billion yuan ($3.7 billion), China Media Group reported.

The market has played a crucial role in promoting the green transformation of electricity enterprises, with the price of carbon dioxide emissions per ton increasing from around 40 yuan in the very beginning to around 90 yuan per ton now, after reaching a historical high of over 100 yuan.

This increase in carbon prices has incentivized many thermal power generating enterprises to enhance energy conservation and emission control, analysts said.

“Price is a crucial signal for the carbon market. If prices are rising, it suggests increased trading activity and China is making progress in promoting a low-carbon industrial transition,” Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told the Global Times on Tuesday.

The national carbon emissions trading market was launched on July 16, 2021, covering approximately 5.1 billion tons of carbon dioxide emissions annually, accounting for over 40 percent of the total emissions nationwide. This makes it the world's largest carbon market in terms of greenhouse gas emissions trading.

The establishment of a national carbon market is viewed a key policy tool for actively and steadily advancing carbon peaking and carbon neutrality, reflecting China's proactive response to curb climate change, analysts said.

China aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

In this year's Government Work Report, it is highlighted that efforts will be made to expand the industry coverage of the national carbon market.

In the first half of this year, the Ministry of Ecology and Environment released draft guidelines for carbon emissions accounting, reporting, and verification for the aluminum smelting and cement companies, which marks a continuous expansion of the market’s coverage.