Carbon CreditsCarbon Credit Prices in China to Climb?

Carbon Credit Prices in China to Climb?

Prices on China’s new carbon credit trading system may rise as more industries join in.

Based on a recent survey conducted by consultancy ICF and SinoCarbon Innovation & Investment, new industries will include:

• Cement
• Steel; and
• Electrolytic Aluminum Manufacturers.

By 2024, petrochemicals, paper, chemicals, and aviation will likely join, too.

The survey involved 420 participants from research institutes, financial institutions, and local governments. Most respondents are from firms that are already watching their GHG emissions. Half are already registered within China’s Emissions Trading Scheme (ETC).

Experts believe this could cause the price of carbon credits in China to increase 78% by 2025 – and even more by 2030.

The Carbon Credit Industry in China and Around the World is Booming.

Both Compliance Carbon Markets and Voluntary Carbon Markets (VCM) are still strong in China. Demand for carbon credits and offsets are high (and supply is limited). The demand is mainly due to:

• Increased regulation,
• New global standards; and
• An increased awareness.

Simply put, one carbon credit equals one metric ton of carbon.

China’s ETS is a cap-and-trade model (compliance carbon market). This means that industries are provided with an allotted amount of carbon they can emit.

If they go over that amount, they need to purchase credits for every metric ton they are over. Basically, the credits serve as a fine. This encourages industries to reduce their GHG emissions long-term. Companies can also buy or trade these allowances based on their emissions.

According to the Ministry of Ecology and Environment, transaction volume reached 186.7 million tons in February. The total value was CNY8.1 billion ($1.3 billion).

China’s ETS only just launched last July. Currently, China’s ETS is the largest carbon trading hub globally. It covers 2,200 key power firms and around 4.5 billion tons of carbon emissions.



Most Popular



Ultimate Guide



Loading...



LATEST CARBON NEWS

How AI and Clean Energy Are Competing for Critical Minerals?

The world is rapidly shifting to clean energy, and this is changing how we power our lives. Technologies like solar panels, wind turbines, and...

Paladin Energy Hits Record Uranium Output Since Restart at Langer Heinrich

Paladin Energy saw a 17% jump in uranium production in the March 2025 quarter, which sent its stock price up. The company produced 745,484...

China Sets Clean Energy Record in Early 2025 with 951 TW

China made big progress in clean energy during the first three months of 2025. The country produced 951 terawatt hours (TWh) of clean electricity...

U.S. Slaps 3,521% Tariffs on Solar Imports—SolarBank CEO Shares Growth Strategy

The U.S. government has imposed steep tariffs on solar panels and cells imported from four Southeast Asian countries: Cambodia, Vietnam, Malaysia, and Thailand. These...
CARBON INVESTOR EDUCATION

Planting Trees for Carbon Credits: Everything You Need to Know

As climate change intensifies, nations and industries are seeking innovative ways to cut carbon footprints. Carbon credits have emerged as a key tool in...

What is SMR? The Ultimate Guide to Small Modular Reactors

Energy is the cornerstone of modern life. We need electricity for healthcare, transportation, communication, and more. Many countries are choosing nuclear power because it...

What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The world must remove 5–16 billion metric tons of CO₂ annually by 2050 to limit global warming to 1.5°C. But with emissions still rising,...

Top 5 Carbon ETFs for Sustainable Investing in 2025

Like stocks, investors can buy and sell Exchange-Traded Funds (ETFs) whenever the market is open. Often investing in carbon credits through ETFs offers a...