China is accelerating its green transition by planning to integrate all major industrial emitters into its national carbon market by 2027. This ambitious initiative, led by the Ministry of Ecology and Environment (MEE), aims to leverage market mechanisms to drive significant reductions in carbon emissions. The expansion aligns with the Communist Party of China Central Committee’s recommendations for the 15th Five-Year Plan (2026-30), which emphasizes broadening the scope of the China Carbon Emission Trade Exchange to include additional sectors. Preparatory work is already underway to incorporate industries such as chemicals, petrochemicals, civil aviation, and paper manufacturing. Meanwhile, sectors like steel, cement, and aluminum smelting, which joined the market in March 2025, have received their quota allocation plans for 2024 and 2025. Key emitters in these industries must meet their 2024 compliance obligations by the end of this year, with 2025 quotas pre-allocated in the first half of 2026 and compliance due by year-end. Xia Yingxian, an MEE official, highlighted that this expansion will enforce emission reduction responsibilities and spur investment in low-carbon technologies. The ministry plans a phased approach, adding new industries only when they meet stringent data and emissions standards, ensuring the market’s effectiveness in achieving China’s climate goals.