China's giant carbon market begins trading

Krupp said the market is also a sign of China's full commitment to participating in global climate governance.

Denis Depoux, global managing director of consultancy Roland Berger, said the establishment of the national carbon trading program will highlight China's prominent role in promoting the global response to climate change.

"The successful practice of China's carbon trading market will also explore a low-carbon green development path that uses market means to stimulate economic development," he said.

Depoux pointed out that the price discovery function can exert pressure on the transformation of high-energy-consuming industries, while providing a clearer ROI (return of investment) expectation for the development of low-carbon technologies.

In the later phase of the 14th Five-Year Plan (2021-25) period, the other seven major carbon-emitting industries are expected to be gradually included in market, "making the carbon emission trading mechanism a key policy tool to realize carbon emission reduction targets," said Thomas Luedi, senior partner at Bain & Co in Shanghai.

As more renewable energy sources are used for power generation, Bain expected the proportion of China's non-fossil energy generation will increase to about 45 percent by 2030. The number was around 30 percent last year, according to the National Energy Administration.