The carbon emission trading market is an important environmental regulatory tool in China to incentivize enterprises to reduce carbon emissions and achieve green and low-carbon development. Based on panel data of A-share listed companies in the Shanghai and Shenzhen stock markets in China from 2008 to 2021, this article studies the impact and transmission mechanism of the carbon emissions trading market on carbon reduction from the perspective of enterprises. The study shows: (1) The carbon emissions trading market significantly promotes carbon reduction by enterprises. (2) At the level of mechanism testing, enterprise green technology innovation and enterprise carbon information disclosure play intermediary roles in the impact of the carbon emissions trading market on enterprise carbon reduction, and government participation strengthens the promotion of carbon reduction by enterprises through the carbon emissions trading market. (3) Heterogeneity analysis reveals that the implementation of the carbon emissions trading market has a stronger effect on carbon reduction by non-state-owned enterprises than state-owned enterprises; compared to non-high energy-consuming enterprises, the promotion of carbon reduction in high energy-consuming enterprises is more pronounced through the implementation of the carbon emissions trading market.This article not only provides theoretical support for the construction of the national carbon emission trading market,but also offers policy insights for promoting the green and low-carbon transformation of enterprises and advancing carbon peaking and neutrality.