Insider Brief:
- The Chinese National Carbon Emissions Trading Market, launched in 2021, will now include steel, cement and electrolytic aluminum smelting industries to the program.
- The carbon market will now cover 60% of the country’s total carbon emissions, up from 40%
- The industries combine an estimated 3 billion tons of carbon dioxide per year, according to the Chinese Ministry of Ecology and Environment
The Chinese Ministry of Ecology and Environment said yesterday that it will include its steel, cement, and electrolytic aluminum smelting industries in the country’s National Carbon Emissions Trading Market.
1,500 New Companies to Join China’s Carbon Market
The trading market will now include approximately 1,500 companies operating in these industries, ministry spokesman Pei Xiaofei said.
Companies entering the carbon market with have a three-year launch period. That means only those companies with the highest number of emissions will need to buy additional allowances, Reuters reported.
Overview of the China Carbon Emissions Market
China’s carbon trading market is the world’s largest, and currently includes 2,200 companies which use coal, China Daily said.
The steel, cement, and electrolytic aluminum sectors emit approximately 3 billion tons of carbon dioxide per year, or 20% of China’s total emissions.
The addition of these companies will mean that the carbon market will now cover 60% of the country’s total carbon emissions, up from 40%.
Looking Ahead: China’s Carbon Goals and Market Growth
The market, launched in 2021, has resulted in lowering the carbon intensity of electricity generation by 8.78 percent and reduced emission control costs by an estimated 35 billion yuan (US$4.8 billion).
“All preparations for the expansion are complete,” he said. “These efforts have laid a solid foundation and provided a guarantee for the market’s growth.”
Preparations have included conducting GHG emission accounting and verification for producers in the three sectors as well as other high-emission sectors.
