[Policy Update] China Adopts "Ecological and Environmental Code"

📰 News Highlight

On March 12, 2026, the fourth session of the 14th National People's Congress officially voted to adopt the "Ecological and Environmental Code of the People's Republic of China." Following the Civil Code, it is China’s second law titled “Code,” integrating existing environmental laws and marking a new era of ecological legal codification.

⚙️ Core Components

1.       Structural Framework: The Code has five parts—General Provisions, Pollution Prevention and Control, Ecological Protection, Green and Low-Carbon Development, and Legal Liability & Supplementary Provisions—adopting a “moderate codification” model that combines existing laws with new rules.

2.       Integration: It incorporates and revises 10 laws, including the Environmental Protection Law and Environmental Impact Assessment Law, which will be abolished when the Code takes effect.

3.       Selective Inclusion: For sectors like forestry and grasslands, the Code includes core principles while over 20 specialized laws (e.g., the Forest Law and Grassland Law) remain in force for detailed governance.

💡 Key Takeaways

1.       Systematic Governance: The Code unifies previously fragmented environmental laws, reducing overlaps and improving enforcement clarity.

2.       Dual-Carbon Legal Basis: A dedicated chapter on green and low-carbon development turns carbon reduction into a legal obligation.

3.       Foundational Role: Serving as a core legal framework for environmental governance, it strengthens compliance requirements for companies operating in China.

[Market Update] National Forestry and Grassland Administration Releases "2025 Communique on the State of China's Land Greening"

📰 News Highlight

On March 12, 2026, the National Forestry and Grassland Administration released the 2025 Communique on the State of China's Land Greening. In 2025, China advanced large-scale greening efforts, completing 3.563 million hectares of afforestation and restoring 4.927 million hectares of degraded grasslands.

💡 Key Takeaways

1.       Ecological Assets: Forest stock reaching 20.988 billion m³ boosts China’s natural capital and strengthens its carbon sink capacity for carbon neutrality.

2.       Green Economy: The forestry and grassland industry’s output near 11 trillion RMB shows ecological protection driving economic growth.

3.       Scientific Afforestation: China is shifting from quantity-focused planting to higher-quality, resilient, and eco-friendly ecosystems.

[Carbon Market]

During March 9 – March 13, the total transaction volume of Carbon Emission Allowances (CEA) in Chinese National Carbon Market reached 2,172,501 tons, with a total transaction value of USD 24,693,542.79. The highest price was USD 12.01/ton, and the lowest price was USD 10.71/ton. For bulk agreement transactions, the volume was 2,114,650 tons, with a transaction value of USD 24,007,683.39.