Hubei's pilot carbon market has become the first in China to surpass 10 billion yuan ($1.47 billion) in cumulative turnover.

As of August 31, cumulative trading volume in the Hubei carbon market reached 425 million tonnes with turnover of 10.57 billion yuan, accounting for over 40% of the national total, according to a briefing at the 2026 Carbon Market Conference held in Wuhan.

Hubei launched carbon emissions trading in October 2011 as one of China's first seven pilots. The provincial market now covers 567 companies across 16 industrial sectors and three non-industrial areas including data centers, ports and construction.

In 2021, Hubei led the establishment of China Carbon Registry, which handles registration, depository and settlement functions for the national carbon market.

The registry has supported the first expansion of China's carbon market, with a cumulative trading volume of 961 million tonnes and turnover of 65.70 billion yuan as of August 31.

Hubei has leveraged the carbon market to cultivate industrial clusters in energy conservation, green and low-carbon development and resource recycling, while promoting pilot applications of major technology facilities such as carbon capture and energy storage stations.

The China Carbon Registry building has attracted over 100 carbon-related institutions and companies, forming an industrial ecosystem where one building represents a complete supply chain.

The province has also deepened integration of the carbon market with green industries, finance and technology, establishing multi-tiered carbon reduction incentive mechanisms.

Innovative models including "carbon tickets plus ecological justice", "carbon tickets plus zero-carbon activities" and "carbon tickets plus finance" have been launched.

The carbon market has driven notable green transformation in Hubei. Data shows seven industries including chemicals, petrochemicals and automobile manufacturing have seen 47% of companies achieve absolute carbon emission reductions.

During the 14th "Five-Year Plan" period, Hubei supported 4.5% of national economic output with 3.3% of national energy consumption, while fossil energy consumption growth of 2.8% annually underpinned 6.8% annual regional GDP growth.