China to add petrochemicals, chemicals to national carbon market

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Caixin Global or enjoy below:

🗞️ Driving the news: China will expand its national emissions trading scheme to cover petrochemicals and chemicals
• The move brings roughly 80% of national CO2 emissions under regulation

🔭 The context: The expansion follows 2025's addition of steel, cement and aluminium, with full coverage of major emitters planned by 2027
• In 2025, 3,378 key emitting entities were under quota management, trading 235 million tonnes

🌍 Why it matters for the planet: As the world's largest emitter, how China prices carbon across its heaviest industries shapes global decarbonisation trajectories
• It also tests the credibility of carbon markets worldwide

⏭️ What's next: Petrochemical and chemical firms will need to prepare for quota management as the scheme phases in
• Full coverage of China's major emitters is targeted for 2027

💬 One quote: "China will expand its national carbon market to include the petrochemical and chemical industries" — Li Gao, Vice Minister of Ecology and Environment

📈 One stat: 3,378 key emitting entities were under quota management in 2025, trading 235 million tonnes

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