China has unveiled a guideline to accelerate the country’s green and low-carbon transition and strengthen the construction of the national carbon trading market.

Jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, the guideline states that by 2027, the country’s carbon trading market will encompass all major industrial sectors. Also, the national voluntary greenhouse gas emission reduction trading market will expand to include all key fields.

By 2030, China will have essentially established a national carbon trading market based on a cap-and-trade system with both free and paid allocations. China will also have completed construction of a national voluntary greenhouse gas emission reduction trading market that is credible, transparent, broadly participatory, and aligned with international standards.

According to a Carbon Herald article, analysts expect sectors such as chemicals, petrochemicals, papermaking and domestic aviation to be among the first to be added to the carbon trading market. In March 2025 the market was expanded to include steel, cement and aluminum —industries responsible for around 60% of China’s greenhouse gases.

The guideline also urges efforts to develop the national voluntary greenhouse gas emission reduction market through measures such as enhancing the coordination of carbon reduction resources, regulating voluntary emission reduction activities, and promoting the application of certified emission reductions.

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