Carbon NewsChina's New Carbon Plan. How Does it Work?

China’s New Carbon Plan. How Does it Work?

China has created a national carbon emissions market to limit emissions throughout the country. The announcement comes after the EU has announced their own carbon pricing plans.

China’s plan is very similar to the concept of carbon credits. First, emission limits are given to companies based on data from the previous year. Buying or selling allowed emission amounts from other companies increases or decreases the max pollution limit.

As well, Companies involved in the plan are to submit emissions data annually. Then, the Ministry of Ecology and Environment checks the results. Exceeding the emission limits will result in fines or decreasing the allowable emission limit.

Initially, the program will include companies in the coal and gas sectors. The end goal is to cover 10,000 companies from all high-emission industries such as aviation, iron and steel, chemicals, and building materials.

China aims to be a net-zero emitter by 2060. Currently, China is responsible for 27% of the global carbon emissions. This could mark a huge shift in global carbon markets. As emissions decrease, the amount of credits available will also decrease.

President of China Xi Jinping said in a speech to the UN last September that China is on track to produce peak emissions before 2030. The new carbon plan is a step in the right direction that shows China’s willingness to fight in the battle against climate change.


Most Popular


Ultimate Guide


Loading...


LATEST CARBON NEWS

Top Carbon Credit Companies to Watch in 2026

Carbon credits are becoming a major part of how the world fights climate change. A carbon credit represents the removal or reduction of one...

Carbon Credit Offtakes Surge in 2025: What the $12B Says About the Future Market?

Offtake agreements became one of the strongest signals in the carbon credit market in 2025. While spot market activity slowed, long-term commitments surged. These...

$100B at Stake: New Joint Venture Builds Digital Backbone for Article 6 Carbon Markets

A new joint venture has launched to help countries enhance carbon mitigation efforts under Article 6 of the Paris Agreement. This partnership includes various...

General Fusion’s Nasdaq Listing Pushes Fusion Energy Into the Market Spotlight

Fusion energy has spent decades on the sidelines of the global energy system. Scientists praised its potential, policymakers admired its promise, and investors waited...
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...