Emissions trading: The new player is not yet scoring any goals

Since Xi Jinping’s announcement that China will reach carbon neutrality by 2060, companies are trying to figure out, how China’s decarbonization agenda will impact their business. But so far, trading is not taking off. Limited scope, high volume of freely-allocated allowance, and limitation of market participants led to a lackluster start of China’s new carbon market, concludes consulting firm Sinolytics.

Last updated: 24. July 2025