China will continue to improve relevant policy support systems for the National Carbon Emission Trading System (ETS), according to a report released by the Ministry of Ecology and Environment on Monday.

While extensively considering factors such as sector carbon emissions, data quality, the synergy between pollution reduction and carbon emission reduction, and high-quality sector development, China will work to expand the coverage of key sectors through the National ETS in stages, according to the Progress Report of China's National Carbon Market (2024).

Efforts will also be made to gradually implement a combination of free and paid carbon emission allowance allocation methods, gradually increasing the proportion of paid allocation to make carbon prices more accurately reflect the emission reduction costs of enterprises, the report stated.

It added that priority support will be given to the development of projects in ecosystem carbon sequestration, renewable energy, methane emission control, energy conservation and efficiency improvement.

The application of low-carbon, zero-carbon and negative-carbon technologies will be promoted, the report said, adding that efforts will be made to explore the application of information technology tools to strengthen data quality management, and promote the widespread application of certified voluntary emission reduction.

China will further deepen international exchange and cooperation, actively participate in bilateral and multilateral processes of global climate governance, and strive to make new progress in negotiations on global carbon market mechanisms, according to the report.

By the end of 2023, the cumulative trading volume of carbon emission allowances in the National ETS reached 442 million tonnes, with a cumulative transaction value of 24.92 billion yuan (about 3.49 billion U.S. dollars), data from the report showed.

In line with the dual carbon goals, China has made unwavering efforts to develop its carbon trading market. It has piloted carbon emission trading in multiple regions since 2011 to explore market-based mechanisms to control greenhouse gas emissions. A national carbon emission trading market was officially launched in 2021.