China · Emissions trading (intensity-based) + CCER credits

China: an ETS covering 3,680 companies and about 8.3 Gt of CO2, with allowances at CNY 97.90 at end-August 2026

China's national ETS started trading on 16 July 2021 with power plants and added steel, cement and aluminium in 2025. In 2026 it covers 3,680 companies and over 65% of national emissions. Allowances are free and tied to output, and companies may use CCER credits for up to 5% of what they owe.

13 November 2026In operationLast checked 2026-11-12
Lujiazui financial district in Pudong, Shanghai, seen across the Huangpu River (Shanghai hosts China's national carbon exchange)
Lujiazui financial district in Pudong, Shanghai, seen across the Huangpu River (Shanghai hosts China's national carbon exchange). Photo: King of Hearts, CC BY-SA 4.0, source. Resized only; no other change.
Summary

In brief

The national ETS opened on 16 July 2021 and closed its first year at CNY 54.22 per tonne. Allowances closed 2025 at CNY 74.63 and stood at CNY 97.90 at the end of August 2026.

Steel, cement and aluminium joined the power sector in 2025. In 2026 the market covers 3,680 companies and about 8.3 Gt of CO2, over 65% of national emissions.

Allowances are given free and tied to each company's output; there is no fixed cap. The government's goal is a cap-based market with free and paid allocation by 2030.

Companies may cover up to 5% of what they owe with CCER credits. A company that fails to surrender now faces a fine of CNY 1–5 million, and then 5–10 times the market price for each missing allowance.

Data

Prices, trading and coverage in charts

Prices rose through 2024, fell in 2025 and recovered in 2026. Trading figures follow the government's own reporting periods; coverage jumped when heavy industry joined.

Allowance closing price at year end, as published by MEE (CNY per tonne)

CNY/t037.575112.51502021202320242025Aug 202654.2279.4297.4974.6397.9

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12. MEE has published year-end closes for 2021, 2023, 2024 and 2025; we found no MEE figure for end-2022. The last point is end-August 2026, not a year end.

Table of the same figures
PeriodCNY/tSource (checked)
202154.22Ministry of Ecology and Environment (MEE) 2026-11-12
202379.42Ministry of Ecology and Environment (MEE) 2026-11-12
202497.49Ministry of Ecology and Environment (MEE) 2026-11-12
202574.63Ministry of Ecology and Environment (MEE) 2026-11-12
Aug 202697.9Ministry of Ecology and Environment (MEE) 2026-11-12

Allowances traded by reporting period (million tonnes)

Mt0751502253002021 (Jul–Dec)2022–2320242025179263189235

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12. 2021 covers 16 July to 31 December. MEE reports 2022 and 2023 together as the second compliance cycle.

Table of the same figures
PeriodMtSource (checked)
2021 (Jul–Dec)179Ministry of Ecology and Environment (MEE) 2026-11-12
2022–23263Ministry of Ecology and Environment (MEE) 2026-11-12
2024189Ministry of Ecology and Environment (MEE) 2026-11-12
2025235Ministry of Ecology and Environment (MEE) 2026-11-12

Year-end close and average traded price by reporting period (CNY per tonne)

Close at end of periodAverage traded price037.575112.515020212022–232024202554.2279.4297.4974.6342.865.6295.8462.36

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12. Averages for 2021, 2022–23 and 2024 are calculated as value divided by volume from MEE figures; 2025 is MEE's published average.

Table of the same figures
PeriodClose at end of periodAverage traded price
202154.2242.8
2022–2379.4265.62
202497.4995.84
202574.6362.36

Companies covered by the ETS

entities01,2502,5003,7505,0002019-202021-222023202520262,1622,2572,0963,3783,680

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12. Power sector only until 2024; steel, cement and aluminium from 2025.

Table of the same figures
PeriodentitiesSource (checked)
2019-202,162Ministry of Ecology and Environment (MEE) 2026-11-12
2021-222,257Ministry of Ecology and Environment (MEE) 2026-11-12
20232,096Ministry of Ecology and Environment (MEE) 2026-11-12
20253,378Ministry of Ecology and Environment (MEE) 2026-11-12
20263,680Ministry of Ecology and Environment (MEE) 2026-11-12

Cumulative allowances traded since July 2021 (million tonnes)

Mt03757501,1251,500End-2021End-2023End-2024End-2025End-Aug 2026179442630865961

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12.

Table of the same figures
PeriodMtSource (checked)
End-2021179Ministry of Ecology and Environment (MEE) 2026-11-12
End-2023442Ministry of Ecology and Environment (MEE) 2026-11-12
End-2024630Ministry of Ecology and Environment (MEE) 2026-11-12
End-2025865Ministry of Ecology and Environment (MEE) 2026-11-12
End-Aug 2026961Ministry of Ecology and Environment (MEE) 2026-11-12

Value of allowances traded by reporting period (CNY billion)

CNY bn051015202021 (Jul–Dec)2022–23202420257.66117.25818.11414.63

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12. 2022 and 2023 are reported together as the second compliance cycle.

Table of the same figures
PeriodCNY bnSource (checked)
2021 (Jul–Dec)7.661Ministry of Ecology and Environment (MEE) 2026-11-12
2022–2317.258Ministry of Ecology and Environment (MEE) 2026-11-12
202418.114Ministry of Ecology and Environment (MEE) 2026-11-12
202514.63Ministry of Ecology and Environment (MEE) 2026-11-12
Chronology

Timeline

Red dates are still ahead.

From the 2021 launch to the 2030 target

  • 2021-02-01MEE's interim trading rules take effect, allowing CCER offsets up to 5%.
  • 2021-07-16The national ETS starts online trading with the power sector.
  • 2021-12-31First compliance cycle ends: 179 Mt traded, closing price CNY 54.22.
  • 2024-01-22The national CCER voluntary credit market opens.
  • 2024-05-01The State Council's Interim Regulations on carbon trading take effect.
  • 2025-03-20Steel, cement and aluminium are brought into the ETS.
  • 2025-07-16First one-way auctions held on the exchange.
  • 2025-12-312025 ends with 235 Mt traded and a closing price of CNY 74.63.
  • 2026-08-08Interim Regulations revised; a CNY 1–5 million fine for failing to surrender is added.
  • 2026-09-02Allocation plan issued for power (2025–26) and steel, cement, aluminium (2026).
  • 2026-12-31Deadline to surrender 2025 allowances in all four sectors.
  • 2027Target: the ETS covers the main industrial emitting sectors.
  • 2030Target: a cap-based market with free and paid allocation.

Source: Ministry of Ecology and Environment (MEE); State Council of the PRC (gov.cn); Ministry of Ecology and Environment (MEE), reproducing the State Council text; General Offices of the CPC Central Committee and the State Council (posted by MEE).

Mechanism

How it works

The yearly cycle for a covered company, using the 2025 compliance year as the example.

How a compliance year works

  1. Step 1

    Listed

    Companies emitting 26,000 tCO2e or more a year directly are put on provincial lists, published by 31 October.

  2. Step 2

    Measure and report

    Emissions data are logged monthly on the national platform; the annual report is checked by the province.

  3. Step 3

    Receive free allowances

    Allowances are set from output and a benchmark; there is no fixed total cap.

  4. Step 4

    Trade

    Companies buy or sell on the national exchange; CCER credits can cover up to 5% of what is owed.

  5. Step 5

    Surrender by 31 December

    2025 allowances are due by 31 December 2026. Failing to surrender brings a CNY 1–5 million fine, then 5–10 times the market price.

Source: Ministry of Ecology and Environment (MEE); Ministry of Ecology and Environment (MEE), reproducing the State Council text.

Coverage

Scope

Four sectors are in; four more are being prepared.

Who and what is covered

Source: Ministry of Ecology and Environment (MEE); Ministry of Ecology and Environment (MEE), reproducing the State Council text. Checked 2026-11-12.

Table of the same figures
ItemRule
Threshold26,000 tCO2e of direct emissions a year
SectorsPower (since 2021); steel, cement, aluminium (from 2025)
Companies, 20253,378: power 2,087; steel 232; cement 962; aluminium 97
Companies, 20263,680, about 8.3 GtCO2, over 65% of national emissions
GasesCO2; also CF4 and C2F6 in the new sectors
Next in linePetrochemicals, chemicals, paper, civil aviation (preparation started)
AllocationFree, tied to output; no fixed total cap. Paid allocation to be phased in
New sectors, 2024Allowances equal to verified emissions
New sectors, 2025Surplus or deficit limited to ±3% per company
Power, 2024Shortfall capped at 20% per company
2026–2030 goalEmissions per unit of product down about 3% in covered sectors
Offsets

Credits and offsets

CCER credits are China's own offsets and the only credits the ETS accepts.

CCER credits at a glance

Source: Ministry of Ecology and Environment (MEE). Checked 2026-11-12.

Table of the same figures
ItemStatus
Offset limitUp to 5% of allowances due
Market opened22 January 2024
Used for 2021–22 compliance3.72 Mt
Used for 2023 compliance6.47 Mt by 58 companies
First day of new credits (March 2025)0.75 Mt at an average CNY 80.45/t
Traded in 20258.84 Mt, CNY 626 million, average CNY 70.76/t
Registered by end-August 202641 projects, 24.23 Mt
Average price to end-August 2026CNY 86.51/t
Methodologies published in 202512
Reference

All figures

70 figures with numbers, each linked to the official text with the date we checked it.

ItemValueSource (checked)
National ETS online trading launch16 July 2021 (power sector first)Ministry of Ecology and Environment (MEE) 2026-11-12
MEE trading rules (Order No. 19) in force1 February 2021Ministry of Ecology and Environment (MEE) 2026-11-12
Interim Regulations adopted by State Council5 January 2024 (Decree No. 775)State Council of the PRC (gov.cn) 2026-11-12
Interim Regulations in force1 May 2024State Council of the PRC (gov.cn) 2026-11-12
Interim Regulations revised8 August 2026 (State Council decision amending administrative regulations)Ministry of Ecology and Environment (MEE), reproducing the State Council text 2026-11-12
CCER (voluntary) market launch22 January 2024Ministry of Ecology and Environment (MEE) 2026-11-12
Steel, cement and aluminium work plan issued20 March 2025 (Huanqihou [2025] No. 23)Ministry of Ecology and Environment (MEE) 2026-11-12
Central policy opinion on the carbon marketdated 24 May 2025; targets for 2027 and 2030General Offices of the CPC Central Committee and the State Council (posted by MEE) 2026-11-12
2030 target designCap-based market with free and paid allocation by 2030General Offices of the CPC Central Committee and the State Council (posted by MEE) 2026-11-12
Allocation plan for 2025-26 (power) and 2026 (steel, cement, aluminium)Dated 1 September 2026; issued 2 September 2026Ministry of Ecology and Environment (MEE) 2026-11-12
Surrender deadline for 2025 allowances31 December 2026Ministry of Ecology and Environment (MEE) 2026-11-12
Deadline to publish 2027 covered-entity lists31 October 2026Ministry of Ecology and Environment (MEE) 2026-11-12
First compliance cycle: volume and value (Jul-Dec 2021)179 Mt; CNY 7.661 bn; 114 trading daysMinistry of Ecology and Environment (MEE) 2026-11-12
Closing price, 31 Dec 2021CNY 54.22/t (+13% from opening)Ministry of Ecology and Environment (MEE) 2026-11-12
Allowance trading 2024: volume and value189 Mt; CNY 18.114 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Closing price, end-2024CNY 97.49/t (+22.75% vs end-2023)Ministry of Ecology and Environment (MEE) 2026-11-12
2024 price milestonesFirst close above CNY 100/t on 24 Apr 2024; 2024 peak CNY 105.65/t on 13 NovMinistry of Ecology and Environment (MEE) 2026-11-12
Allowance trading 2025: volume and value235 Mt (about +24%); CNY 14.630 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Closing price, end-2025CNY 74.63/tMinistry of Ecology and Environment (MEE) 2026-11-12
Average traded price 2025CNY 62.36/tMinistry of Ecology and Environment (MEE) 2026-11-12
Cumulative allowance trading to 31 Dec 2025865 Mt; CNY 57.663 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Trading days in 2025243Ministry of Ecology and Environment (MEE) 2026-11-12
Closing price, end-August 2026CNY 97.90/t (+31.18% vs end-2025)Ministry of Ecology and Environment (MEE) 2026-11-12
Cumulative allowance trading to end-August 2026961 Mt; CNY 65.699 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Trading growth Jan-Aug 2026Volume +46.53%, value +67.64% year on yearMinistry of Ecology and Environment (MEE) 2026-11-12
Trading methods 2024Listed agreement 37 Mt; block agreement 152 MtMinistry of Ecology and Environment (MEE) 2026-11-12
One-way auctionsFirst 3 auctions on 16 Jul 2025 (0.13 Mt); 9 auctions and 0.338 Mt by end-Aug 2026Ministry of Ecology and Environment (MEE) 2026-11-12
Covered entities that traded in 20241,471Ministry of Ecology and Environment (MEE) 2026-11-12
First compliance cycle coverage (2019-2020 allowances)2,162 power entities; about 4.5 GtCO2 a yearMinistry of Ecology and Environment (MEE) 2026-11-12
Second cycle coverage (2021-2022)2,257 entities; about 5.1 GtCO2e a yearMinistry of Ecology and Environment (MEE) 2026-11-12
2023 compliance year coverage2,096 power entities; about 5.2 GtCO2 a yearMinistry of Ecology and Environment (MEE) 2026-11-12
Covered entities, 20253,378 (power 2,087; steel 232; cement 962; aluminium 97)Ministry of Ecology and Environment (MEE) 2026-11-12
Covered entities and emissions, 20263,680 entities; about 8.3 GtCO2; over 65% of national emissionsMinistry of Ecology and Environment (MEE) 2026-11-12
Share of national CO2 coveredPower alone about 40%; over 60% after adding steel, cement, aluminiumMinistry of Ecology and Environment (MEE) 2026-11-12
Size of first expansionAbout 1,500 new companies; about 3 GtCO2 addedMinistry of Ecology and Environment (MEE) 2026-11-12
Gases covered in steel, cement and aluminium3: CO2, CF4, C2F6Ministry of Ecology and Environment (MEE) 2026-11-12
Inclusion threshold26,000 tCO2e of direct emissions a yearMinistry of Ecology and Environment (MEE) 2026-11-12
Next sectors in preparationPetrochemicals, chemicals, paper, civil aviationMinistry of Ecology and Environment (MEE) 2026-11-12
Allocation methodFree allocation, moving gradually to a mix of free and paidMinistry of Ecology and Environment (MEE), reproducing the State Council text 2026-11-12
Intensity-based designAllowances tied to output; no absolute cap setMinistry of Ecology and Environment (MEE) 2026-11-12
Steel, cement, aluminium: 2024 allocationAllowances equal to verified 2024 emissions (no shortfall)Ministry of Ecology and Environment (MEE) 2026-11-12
Steel, cement, aluminium: 2025 surplus/deficit capEach entity within ±3%Ministry of Ecology and Environment (MEE) 2026-11-12
Phasing for new sectorsStart-up phase 2024-2026; deepening phase from 2027Ministry of Ecology and Environment (MEE) 2026-11-12
Power sector 2024: shortfall capEntity shortfall capped at 20%Ministry of Ecology and Environment (MEE) 2026-11-12
2021 and 2022 allocation vs verified emissionsIssued 5.096 Gt and 5.104 Gt; verified 5.094 Gt and 5.091 GtMinistry of Ecology and Environment (MEE) 2026-11-12
2023 allocation vs verified emissionsIssued 5.215 Gt; required 5.244 Gt; gap 0.55%Ministry of Ecology and Environment (MEE) 2026-11-12
Five-year target 2026-2030Unit-product emissions in covered sectors down about 3%Ministry of Ecology and Environment (MEE) 2026-11-12
First cycle compliance rate99.5% (by volume)Ministry of Ecology and Environment (MEE) 2026-11-12
Compliance rates for 2021 and 2022 allowances99.61% and 99.88%Ministry of Ecology and Environment (MEE) 2026-11-12
2023 compliance yearSurrender due 5.244 Gt; about 99.98% completedMinistry of Ecology and Environment (MEE) 2026-11-12
2024 compliance yearSurrender due 8.194 Gt; about 99.99% completedMinistry of Ecology and Environment (MEE) 2026-11-12
Penalty for failing to surrender (revised text)CNY 1-5 million fine; if still not surrendered, 5-10x the prior month's average price per missing allowanceMinistry of Ecology and Environment (MEE), reproducing the State Council text 2026-11-12
Penalty for failing to surrender (original 2024 text)5-10x the prior month's average price; refusal: equal cut to next year's allowancesState Council of the PRC (gov.cn) 2026-11-12
Penalty for falsified emissions dataFine CNY 0.5-2 million (or 5-10x illegal gains); refusal: 50-100% cut to next year's allowancesMinistry of Ecology and Environment (MEE), reproducing the State Council text 2026-11-12
Record keepingOriginal data records kept at least 5 yearsMinistry of Ecology and Environment (MEE), reproducing the State Council text 2026-11-12
CCER offset limitUp to 5% of allowances dueMinistry of Ecology and Environment (MEE) 2026-11-12
CCER used for 2021-2022 compliance3.7174 MtMinistry of Ecology and Environment (MEE) 2026-11-12
CCER used for 2023 compliance6.4727 Mt by 58 entitiesMinistry of Ecology and Environment (MEE) 2026-11-12
First trading of new CCERs (March 2025)0.7488 Mt on day one at an average CNY 80.45/tMinistry of Ecology and Environment (MEE) 2026-11-12
CCER trading 20258.8441 Mt; CNY 626 mMinistry of Ecology and Environment (MEE) 2026-11-12
CCER average price 2025CNY 70.76/tMinistry of Ecology and Environment (MEE) 2026-11-12
CCER registered by end-202533 projects; 17.7637 MtMinistry of Ecology and Environment (MEE) 2026-11-12
CCER registered by end-August 202641 projects; 24.2335 Mt; cumulative trading 21.7068 Mt (CNY 1.737 bn)Ministry of Ecology and Environment (MEE) 2026-11-12
CCER average price to end-August 2026CNY 86.51/tMinistry of Ecology and Environment (MEE) 2026-11-12
CCER methodologies published in 202512Ministry of Ecology and Environment (MEE) 2026-11-12
Registry accounts (CCER registry)6,106Ministry of Ecology and Environment (MEE) 2026-11-12
Average price, Jul-Dec 2021 (calc)CNY 42.80/t = 7,661 / 179 (f14)Ministry of Ecology and Environment (MEE) 2026-11-12
Average price 2024 (calc)CNY 95.84/t = 18,114 / 189 (f21)Ministry of Ecology and Environment (MEE) 2026-11-12
Closing price at end-2023CNY 79.42/t (+46.48% vs first-cycle close)Ministry of Ecology and Environment (MEE) 2026-11-12
Second-cycle allowance trading, 1 Jan 2022 to 31 Dec 2023: volume and value263 Mt; CNY 17.258 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Cumulative allowance trading to end-2023442 Mt; CNY 24.919 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Cumulative allowance trading to end-2024630 Mt; CNY 43.033 bnMinistry of Ecology and Environment (MEE) 2026-11-12
Average price 2022-2023 (calc)CNY 65.62/t = 17,258 / 263 (f78)Ministry of Ecology and Environment (MEE) 2026-11-12
Questions

Frequently asked questions

What is the carbon price in China's national ETS?

Allowances closed 2025 at CNY 74.63 per tonne, with a 2025 average of CNY 62.36. At the end of August 2026 the closing price was CNY 97.90, up 31.18% from the end of 2025.

Which sectors does China's ETS cover?

Power since July 2021, and steel, cement and aluminium since 2025. In 2026 that is 3,680 companies and about 8.3 Gt of CO2, over 65% of national emissions. Preparation has started for petrochemicals, chemicals, paper and civil aviation.

Does China's ETS have a cap?

Not a fixed one. Allowances are free and tied to each company's output against a benchmark. The 2025 policy opinion aims for a cap-based market with free and paid allocation by 2030.

Can companies use carbon credits in China's ETS?

Yes, CCER credits for up to 5% of the allowances they owe. 6.47 Mt of CCERs were used for the 2023 compliance year.

What happens if a company does not surrender enough allowances?

Under the regulations as revised on 8 August 2026, it is ordered to fix it and fined CNY 1–5 million. If it still fails, it is fined 5–10 times the previous month's average price for each missing allowance and may be ordered to stop production.

How much is traded?

235 Mt of allowances worth CNY 14.63 billion in 2025, about 24% more than in 2024. By the end of August 2026, 961 Mt had been traded in total since 2021.

When is the next compliance deadline?

31 December 2026, for 2025 allowances in all four sectors.

How many companies actually comply?

About 99.99% of the 8.194 Gt due for 2024 was surrendered on time, up from 99.5% in the first cycle (2019–2020 allowances).

Gaps

Not listed yet

Items we could not confirm in an official text are left out on purpose.

  • A daily allowance price: daily prices come from the trading exchange, which we do not republish. The latest government figure is end-August 2026.
  • Total allowances allocated for 2024–2026 in tonnes: the 2026 allocation plan's annex was not read.
  • A price floor or ceiling: none was found in the official documents read.
  • The share of allowances sold rather than given free: paid allocation is a stated goal, with no figure published.
  • Latest daily price (November 2026) — The newest exchange daily bulletin we could locate and read is 13 August 2026; later bulletins were not found. www.cneeex.com earlier returned HTTP 420 (bot block), not bypassed.
  • Separate allowance volume for 2022 and 2023 from MEE — MEE publishes cycle totals; single-year 2022 and 2023 figures are not shown, because only government figures are listed here.
  • Total allowances allocated for 2024-2026 in tonnes — The 2026 allocation plan page was read only for its title and date; the plan's annex was not read.
  • Price floor or ceiling — No official floor or ceiling found in the documents read.
  • Share of paid (auctioned) allocation — Paid allocation is a stated goal; no auction volume or share for primary allocation was found.
Record

Sources