[Policy Update] State Council Issues Opinions to Expand Capacity and Enhance Quality of the Service Sector

📰 News Highlight

Recently, the State Council officially issued the "Opinions on Promoting Capacity Expansion and Quality Enhancement of the Service Industry" (the "Opinions"). The document sets an ambitious target for the total scale of the service industry to reach 100 trillion RMB by 2030.

⚙️ Core Components

1.       Energy Efficiency and Green Retrofitting: The Opinions mandate energy efficiency diagnostics for key industries and promote the "Energy Expense Contracting" (EEC) model for public institutions.

2.       Carbon Finance and Market Innovation: To provide liquidity for green transitions, the policy supports: Using carbon emission rights, sewage discharge rights, and water rights as collateral.

💡 Key Takeaways

1.       The Rise of the "Energy Custodian" Model: By promoting energy expense trustee/custodial services, the government is creating a massive market for Energy Service Companies.

2.       Mainstreaming Carbon Assets in Finance: The move to allow carbon and water rights as collateral for loans transforms these environmental "permits" into tangible financial assets.

3.       Professionalization of Environmental Services: Reaching a 100 trillion RMB industry scale requires the service sector to shift from labor-intensive to tech-driven.

[Market Update] China Meteorological Administration Releases Annual Report on Polar Climate Change (2025)

📰 News Highlight

On May 7, 2026, the China Meteorological Administration (CMA) officially released the Annual Report on Polar Climate Change (2025) (the "Report"). This marks the fourth consecutive year the CMA has issued this comprehensive analysis.

💡 Key Takeaways

1.       Arctic Warming and Record Ice Loss: The Arctic continues to face extreme climatic pressure, with the average annual temperature reaching -6.40°C (1.14°C above normal).

2.       Divergent Ozone Trends: The Report highlights a sharp contrast in ozone behavior. The 2025 Antarctic ozone hole showed significant mitigation, recording its fifth-smallest maximum single-day area in history.

3.       Strategic Global Warning: The Report underscores that polar changes are no longer just gradual shifts but are increasingly characterized by high-intensity anomalies.

[Carbon Market]

During May 06 – May 08, the total transaction volume of Carbon Emission Allowances (CEA) in Chinese National Carbon Market reached 1,204,900 tons, with a total transaction value of USD 13,819,241.04. The highest price was USD 11.77/ton, and the lowest price was USD 11.42/ton. For bulk agreement transactions, the volume was 1,030,000 tons, with a transaction value of USD 11,759,792.15.