China’s carbon trading market is celebrating its third anniversary with a bang —and it’s pushing coal-fired power companies to go greener than ever. Launched in 2021, the market has become a key player in the country’s quest to hit carbon neutrality by 2060, according to the Chinese Ministry of Ecology and Environment.
How It Works: Think of it like a climate-friendly stock exchange . The government sets emission caps for companies and gives them tradable quotas. Firms that cut emissions can sell extra quotas for cash , while heavy polluters must buy more. ‘Higher prices mean higher costs for polluters, but bigger rewards for greener companies,’ says Yu Xiang, a climate economics expert at the Chinese Academy of Social Sciences.
By the Numbers:
$3.7B+ traded since 2021
Carbon prices doubled from ~$5.5 to $12.4 per tonne
2,000+ coal plants now incentivized to slash emissions
The market is set to expand this year to include steelmakers and construction giants . Experts say tech innovation could further cut costs for companies racing to decarbonize. ‘This isn’t just about quotas—it’s a blueprint for a low-carbon future,’ adds Xu Huaqing, a top climate strategist.
With prices hitting record highs , China’s carbon experiment is proving that green policies can drive real change. Who said saving the planet couldn’t be profitable?
—and it’s pushing coal-fired power companies to go greener than ever. Launched in 2021, the market has become a key player in the country’s quest to hit carbon neutrality by 2060, according to the Chinese Ministry of Ecology and Environment.
. The government sets emission caps for companies and gives them tradable quotas. Firms that cut emissions can sell extra quotas for cash 
, while heavy polluters must buy more. ‘Higher prices mean higher costs for polluters, but bigger rewards for greener companies,’ says Yu Xiang, a climate economics expert at the Chinese Academy of Social Sciences.
Carbon prices doubled from ~$5.5 to $12.4 per tonne
2,000+ coal plants now incentivized to slash emissions
. Experts say tech innovation could further cut costs for companies racing to decarbonize. ‘This isn’t just about quotas—it’s a blueprint for a low-carbon future,’ adds Xu Huaqing, a top climate strategist.
, China’s carbon experiment is proving that green policies can drive real change. Who said saving the planet couldn’t be profitable? 
