China's National Carbon Market to Expand to Petrochemicals, Chemicals, Covering About 80% of Emissions

The national carbon emissions trading market will expand its coverage, adding high-emission industries such as petrochemicals and chemicals on top of the existing four sectors of power generation, steel, cement, and aluminum smelting. This move aims to achieve effective control of about 80% of the country's carbon dioxide emissions. On August 13, Li Gao, Vice Minister of Ecology and Environment, introduced the relevant situation at a press conference held by the State Council Information Office.

Since its launch in July 2021, the national carbon market has gradually expanded its coverage. In March 2025, on the basis of the power generation sector, the steel, cement, and aluminum smelting industries were formally incorporated into the national carbon emissions trading market. After this expansion, the carbon market covers approximately 60% of the country's total carbon dioxide emissions.