This post is also available in: SpanishIn a strategic effort to tackle climate change and advance towards a more sustainable economy, China has issued an official directive to expand and consolidate its National Emissions Trading System (ETS) by 2030. The National Emissions Trading Market is a mechanism that sets limits on the maximum allowed emissions for companies and industries by assigning them “carbon credits” or permits to emit a designated amount of greenhouse gases, mainly carbon dioxide (CO2). Companies that reduce their emissions below their quota can sell these credits to others exceeding their limits, creating a direct economic incentive to invest in clean technologies and energy efficiency. By 2030, China expects to have fully consolidated a strong national system that combines free and paid allocations with advanced mechanisms for emissions accounting, reporting, and verification. Thus, the emissions trading system emerges as a key instrument to control and balance emissions reduction with sustained economic growth.