China launches world's largest carbon market

China inaugurated its national carbon market on July 16, with trading center located in Shanghai and carbon quota registration system settled in Wuhan, Hubei province.

It is a landmark practice that helps China accelerate reduction of domestic carbon emissions, and achieve "dual carbon goals" in the long run.

It initially covered more than 2,200 companies in China's power sector. Overall eight high energy-consuming sectors, such as petrochemistry, paper making, non-ferrous metals and civil aviation, will be involved in the trading market by 2022.

The market sets emission permits and quotas for companies to release carbon dioxide. Those do not have sufficient quotas will have to buy them on the market, and those with spare allowances can sell the quotas for profits.

China's carbon market has become the world's biggest trading platform with nearly 4 billion tons of carbon allowances, according to the Ministry of Ecology and Environment.