Low-carbon economy is a core concept within the idea of sustainable development. Low-carbon economy promotes the development of clean and renewable energy that emits less pollution and carbon. Through such economic mode it is possible for a society to achieve both advancement of economic development and natural conservation.

China in recent years has been gradually adopting the low-carbon economic mode by reducing carbon emission and encouraging the advancement of energy-saving and recycle technologies. The China Carbon Emission Trading Scheme is designed as a market mechanism to control the carbon emission. Since 2011 when the market was first launched in pilot cities, China Carbon Market has gone through several stages and now the National Market was ready for initiation in 2017.

By the end of 2018, the total carbon trading volumes in China reached 800 million tons with Hubei Emission Exchange contributes the most (330 million tons, 42.14% of total volumes). For the trading turnover, the total amount has reached 11 billion Yuan by 2018, with Hubei Emission Exchange completed the most turnover - about 66% of the total amount. The average trading price between 2013-2018 was 14.4 Yuan/ton. Only Hubei, Shenzhen and Fujian Emission Exchange had an average trading price over the average number.

Researchers believe that the low trading price is due to the uncertainties presented in the market. However, trading price in 2018 is rising with Beijing Emission Exchange reached a price of 52.72 Yuan/ton. According to the projection from NDRC, the ideal trading price should reach 300 Yuan/ton. Given that the current average price is 22 Yuan/ton, the China Carbon Market still has the potential to reach a size that is 10 times bigger than the present.