The Regulation will come into effect on May 1, 2024, marking an important progress in China's legislation in the field of climate change. This regulation clarifies the carbon emission trading system, aiming to regulate carbon emission trading through legal means, strengthen greenhouse gas emission control, and promote the achievement of carbon peak and carbon neutrality goals. The Regulation introduces a combination of free and paid carbon quota allocation methods to control the total carbon emissions, and proposes market regulation measures to balance market supply and demand and prevent carbon prices from getting out of control. China actively participates in global climate governance, and since proposing the "dual carbon" target, it has continuously accelerated the transformation of its energy structure and worked together with the international community to address climate change.