China has taken a significant step toward achieving its carbon peaking and carbon neutrality goals. The State Administration for Market Regulation (SAMR) recently issued the Carbon Measurement Review Specification for Key Emission Units, which will take effect on March 8, 2026. This new framework introduces clear, unified norms and guidelines for carbon emission measurement across industries, marking an important advancement in the country’s environmental governance and low-carbon transition.
Establishing a Standardized Framework
The new specification provides a comprehensive framework for regulating carbon emission measurement management within key emission units. It sets clear requirements for personnel qualifications, measurement instruments, and data handling. By defining the scope of measurement, the guidelines cover greenhouse gas emissions resulting from fossil fuel combustion, industrial production, waste disposal, and even indirect emissions from purchased electricity and heat consumption.
This systematic approach aims to eliminate inconsistencies in how emissions are monitored and reported, ensuring that the data used for policymaking, compliance, and market transactions is both reliable and comparable across industries.
Supporting National Climate Goals
The 2025 Government Work Report underscored the importance of “actively and steadily promoting carbon peaking and carbon neutrality.” Accurate and credible carbon data is critical to this mission. Reliable measurement underpins the statistical accounting system that tracks progress on emission reductions and supports the credibility of China’s carbon trading market. Without robust and verifiable data, both national targets and market mechanisms risk being undermined by uncertainty or inefficiency.
The introduction of these guidelines provides a roadmap for emission-intensive sectors to strengthen their measurement capabilities. It also reinforces accountability, ensuring that businesses can no longer rely on fragmented or inconsistent reporting methods.
Enabling Fair and Transparent Carbon Trading
Carbon markets thrive on trust and transparency. For China’s emissions trading system (ETS) to operate effectively, stakeholders—including enterprises, regulators, and investors—must have confidence in the accuracy of reported emissions data. The new specification helps safeguard fair competition by creating a level playing field for all participants.
By offering a solid data foundation, the guidelines not only support regulatory oversight but also improve the efficiency of the carbon market. With better measurement practices in place, companies are incentivized to adopt sustainable practices, while investors gain more certainty in assessing risks and opportunities.
Looking Ahead
The release of the Carbon Measurement Review Specification for Key Emission Units reflects China’s determination to align technical standards with its long-term climate strategy. Beyond setting clearer rules, the initiative builds institutional capacity for carbon governance, which will be essential as the country advances toward its 2030 carbon peak and 2060 carbon neutrality commitments.
For businesses, the new specification is more than a compliance requirement—it is an opportunity to strengthen ESG reporting, enhance transparency, and position themselves competitively in a rapidly greening economy. As these standards come into effect, companies operating in China will need to integrate robust measurement and reporting practices into their operations to remain both compliant and credible in the eyes of regulators, markets, and global partners.