China's national carbon market (ETS) launched in July 2021 and is now the world's largest by covered emissions. It puts a price on carbon through tradable Carbon Emission Allowances (CEA), traded on the Shanghai Environment and Energy Exchange. For international buyers and compliance teams, the CEA price is the single most watched signal of China's decarbonization cost.
CEA price snapshot
| Period | CEA price (yuan/ton CO2) |
|---|---|
| Launch (Jul 2021) opening | 48.00 |
| 2023 average | ~75.2 |
| 2024 average (peaks >100) | ~99.4 |
| 2025 average (low 51.2, year-end 74.63) | 62.36 |
| 2026 Aug-end closing (+31% vs 2025-end) | 97.90 |
| 2026 Sep 30 closing | 94.96 |
| Fudan index mid-price (Oct 2026 expectation) | ~94.27 |
Sources: Shanghai Environment and Energy Exchange, Ministry of Ecology and Environment, Fudan Carbon Price Index. Prices are indicative; verify live quotes before trading or compliance planning.
Coverage and expansion
The market started with the power sector and in 2026 expanded to steel, cement and aluminum, bringing the total to roughly 3,300+ key emitters covering about 60-65% of national CO2 emissions (over 8 billion tons). Chemicals, petrochemicals, paper and aviation are in preparation, with a target to cover about 80% of emissions under the 15th Five-Year Plan.
Trading and volume
By 30 September 2026 cumulative CEA volume reached about 992 million tons with turnover near 68.6 billion yuan. 2025 volume was 235 million tons (+24% year on year). Allowances are still largely freely allocated, with a shift toward paid allocation underway.
CCER and offsets
The CCER (China Certified Emission Reduction) voluntary market lets project-based cuts offset compliance. In 2025 CCER volume was about 8.84 million tons at an average ~70.76 yuan/ton, with an offset cap of 5% of compliance. CCER is meant to act as a lower-cost "pressure valve" versus CEA.
International context
China's CEA (~95-100 yuan/ton, roughly 13-14 USD) is far below the EU ETS (~75 EUR/ton, about 585 yuan/ton in 2026). That gap is why the EU's CBAM matters for Chinese exporters. In a positive signal, the UK added China's national ETS to its recognized overseas carbon-pricing list in August 2026, enabling carbon-price deductions from 2027.
Why it matters for your business
A rising CEA price adds a real cost to coal-based generation and rewards cleaner power. For Scope 2/3 accounting, combine the carbon price with local grid factors using our provincial electricity price & emission factor tool, and read Coal to Clean for the power-mix context.
Frequently asked questions
What is the current China carbon price?
The national ETS allowance (CEA) closed around 95 yuan/ton in late September 2026 after touching 100 yuan/ton intraday in August 2026; the Fudan carbon-price index put the October 2026 mid-price near 94 yuan/ton.
Which sectors does China's ETS cover?
As of 2026 it covers power, steel, cement and aluminum - about 3,300+ key emitters and roughly 60-65% of national CO2 emissions - with chemicals, petrochemicals, paper and aviation in preparation.
How does China's carbon price compare with the EU?
China's CEA (~95-100 yuan/ton, about 13-14 USD) is well below the EU ETS (~75 EUR/ton, roughly 585 yuan/ton in 2026), which is why the EU's CBAM matters for Chinese exporters.