Source: Ministry of Ecology and Environment (MEE), via China Iron and Steel Association
China's Ministry of Ecology and Environment has released the National Carbon Market Development Report 2026, which was officially unveiled at the 2026 China Carbon Market Conference on 15 September. The report is the latest annual review of the world's largest emissions trading system by covered volume, following the 2025 edition, and comes as the steel industry adjusts to life under carbon pricing.
The new report systematically summarises the latest progress of the national carbon emissions allowance trading market and the national greenhouse gas voluntary emission reduction trading market, presents the operational achievements of both markets, and outlines the future direction of development. It is intended to give companies, investors and the public a fuller picture of how the national carbon market is being built and operated.
The release is of direct relevance to the steel sector. The national carbon market, launched in 2021 with the power generation sector as its first covered industry, has been gradually expanded to other major emitting industries including steel, cement and aluminium smelting. Steelmakers are now required to account for their greenhouse gas emissions, manage allowance allocations and strengthen carbon asset management capabilities, making the report a practical reference for compliance and strategy.
Industry observers note that a functioning carbon price is expected to accelerate the adoption of low-carbon technologies across the steel value chain, including higher scrap usage, hydrogen-based direct reduction and increased deployment of energy-efficient equipment. It also supports export-oriented steel producers in responding to carbon-related trade measures in overseas markets, such as the EU Carbon Border Adjustment Mechanism. The full report in Chinese is available for download through the Ministry of Ecology and Environment.
