China's carbon trading market expands to cover steel, cement, and aluminum
2025-03-26 17:03:00 [Print]
China has released the work plan for expanding the national carbon emission trading market to cover steel, cement, and aluminum smelting industries, marking the official implementation of the first expansion of the carbon trading market.
Currently, the national carbon market covers only the power generation sector, encompassing 2,200 key emission units and regulating over 5 billion tonnes of annual CO2 emissions. The steel, cement, and aluminum smelting industries are major carbon emitters, collectively producing approximately 3 billion tonnes of CO2 equivalent annually, over 20% of China's total carbon emissions. With this expansion, an estimated 1,500 additional key emission units will be included, increasing the market's coverage to over 60% of the nation's total CO2 emissions. Furthermore, the scope of regulated greenhouse gases will be extended beyond CO2 to include carbon tetrafluoride (CF4) and hexafluoroethane (C2F6).
China will adopt a phased approach based on the principle of "implementation alongside refinement", according to the work plan issued by the Ministry of Ecology and Environment. The expansion will be carried out in two stages in an orderly and steady manner. In the near term, the ministry will issue a notice on incorporating the three industries into the carbon market, outlining key tasks and deadlines. These include the development of a registry of major emission units, monthly verification of key parameters, carbon emission reporting and verification, allocation of emission allowances, and compliance obligations.
Currently, the national carbon market covers only the power generation sector, encompassing 2,200 key emission units and regulating over 5 billion tonnes of annual CO2 emissions. The steel, cement, and aluminum smelting industries are major carbon emitters, collectively producing approximately 3 billion tonnes of CO2 equivalent annually, over 20% of China's total carbon emissions. With this expansion, an estimated 1,500 additional key emission units will be included, increasing the market's coverage to over 60% of the nation's total CO2 emissions. Furthermore, the scope of regulated greenhouse gases will be extended beyond CO2 to include carbon tetrafluoride (CF4) and hexafluoroethane (C2F6).
China will adopt a phased approach based on the principle of "implementation alongside refinement", according to the work plan issued by the Ministry of Ecology and Environment. The expansion will be carried out in two stages in an orderly and steady manner. In the near term, the ministry will issue a notice on incorporating the three industries into the carbon market, outlining key tasks and deadlines. These include the development of a registry of major emission units, monthly verification of key parameters, carbon emission reporting and verification, allocation of emission allowances, and compliance obligations.
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