Latest / China Economy with Fexingo: Beijing's Policies, Trade, and Asia-Pacific Markets
How Chinas Carbon Market Is Becoming a Global Price Setter
China's national carbon market expanded from power generation to cement and aluminium in early 2026, making it the world's largest emissions trading system by volume. Lucas and Luna examine how Beijing is using allowance auctions to set a de facto carbon price that influences global supply chains, especially for steel and solar exports. They discuss the impact on corporate compliance costs, the role of the yuan in carbon credit settlements, and what this means for multinationals operating in China. With the yuan stable at 6.80 and EV exports facing EU tariffs, China's carbon…
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