Abstract: This report pointed out that as China’s carbon market enters its second performance cycle in 2022, the pilot carbon markets and national carbon market are making steady progress. The development of the pilot carbon markets is relatively stable with few fluctuations in trading volume compared with that in 2021. The national carbon market has been operating steadily, and the carbon price has increased by 60% compared with that in 2021. Domestic enterprises respond positively to the carbon market, and the whole society pays close attention to the construction of carbon market. The report suggested that in the next phase, considering the emission abatement potentials and the readiness for participating in the carbon market, China’s national carbon market should preferentially include the following sectors: cement, steel, glass, pulp, chemical material, nitrogenous fertilizer, and aluminum smelting.