Ministry of Ecology Integrates Steel, Cement, and Aluminium into Carbon Trading Market
Expansion of Carbon Trading Market
China's ministry of ecology plans to expand the national carbon trading market to include the steel, cement, and aluminium sectors by the end of this year. This is crucial in the fight for net-zero emissions.
Overview of the Expansion
- Inclusion of three major emissions-heavy industries.
- Coverage of approximately 60 percent of China’s carbon emissions.
- Goal to peak emissions by 2030 and achieve net-zero emissions by 2060.
Details of the National Carbon Trading Market
The emissions trading scheme (ETS) will add around 1,500 companies, significantly increasing its carbon credit framework. Companies will receive emissions quotas based on their output, allowing them to buy or sell carbon credits as needed.
Future Projections
- By 2025, the ETS will encompass all eight major carbon-emitting sectors.
- Projected coverage of 75 percent of overall carbon-dioxide emissions.
This expansion has been anticipated since the ETS was launched in July 2021, which initially covered the power sector. The current carbon price is set at 92.84 yuan per tonne, reflecting an increase since the system's inception.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.