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China’s Carbon Market Expands Into Heavy Industry As USA Regresses

China’s Ministry of Ecology and Environment has extended mandatory carbon‑reporting to petrochemicals, chemicals, flat glass, copper smelting, papermaking and civil aviation, laying groundwork for future ETS inclusion. The national emissions trading system already covers power, steel, cement and aluminum—about 60‑65% of China’s emissions—making it the world’s largest carbon market by volume. Reporting will begin in 2025‑26, with likely compliance integration by 2027‑30, potentially raising coverage to 70‑80% of national emissions. Meanwhile, the United States has rolled back its federal greenhouse‑gas endangerment finding, contrasting sharply with China’s expansion and the EU’s tightening ETS.