Climate Cooperation China
On behalf of the International Climate Initiative (IKI)

MEE Plans to Include More Sectors in the National ETS During 14th FYP

At a conference on September 27, following the climate announcement of President Xi Jinping at the UN General Assembly, Mr. Li Gao, Director General of the Department of Climate Change of the MEE, Professor He Jiankun, former Vice President of Tsinghua University and Mr. Xu Huaqing, Director of the National Center for Climate Change Strategy and International Cooperation (NCSC), gave insights into China’s policies to actively address the challenge of climate change.

Regarding the construction of the national ETS, Li pointed out that the power generation industry was well prepared for participating in the national carbon market. A number of intensive trainings have been conducted for local authorities, as well as power companies. Preparations for the necessary regulations and supporting systems are well advanced. The plans for the settlement and trading systems have been confirmed and will enter the construction stage soon. After confirming the participating installations, finalizing the system’s infrastructure and a test period, the actual trading phase will begin.

Li further explained that during the 14th Five-Year Plan period, the construction of the national ETS will be accelerated. He specifically mentioned the inclusion of other key industries, including steel, cement, chemicals, electrolytic aluminum, and paper making. In recent years much work has already been carried out to prepare these sectors for the inclusion in the national ETS, such as basic data collection, research on allocation, and capacity building for industry personnel. The event was mainly attended by Chinese journalists.

Earlier in September, Li spoke at the conference “2020 Beijing International Forum for Metropolitan Clean Air and Climate Actions”. In his speech, he confirmed that the national ETS is supposed to start this year.

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China issues National Climate Plan for 2026–2030

On 27 July 2026, the Ministry of Ecology and Environment (MEE) and 18 other national authorities jointly issued the “National Climate Change Plan for the 15th Five-Year Plan Period”. The plan covers the period 2026–2030 and addresses mitigation, adaptation, carbon markets, product carbon footprints and climate governance.

The plan builds on the objectives of the general 15th Five-Year Plan (FYP) for National Economic and Social Development, adopted in March 2026, and of the State Council’s “Action Plan for Carbon Peaking during the 15th Five-Year Plan Period”, issued earlier this month. While the “Action Plan for Carbon Peaking” focuses mainly on energy and sectoral carbon dioxide (CO2) reductions, the new national climate plan also addresses non-CO2 gases, climate risk and the data systems needed to implement climate policy.

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China sets out how it intends to peak carbon emissions before 2030

On 9 July 2026, the State Council published the “Action Plan for Carbon Peaking during the 15th Five-Year Plan Period (2026–2030)”. The plan translates the climate objectives of the 15th Five-Year Plan, adopted in March 2026, into sector-level measures for energy, industry, transport, buildings and carbon markets. It is the central instrument through which China intends to reach its target of peaking carbon dioxide (CO2) emissions before 2030, and prepare the ground for carbon neutrality before 2060.

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