Mysteel Global: In a move marking the official launch of the expansion phase of China’s trading market for carbon, on March 26 the Ministry of Ecology and Environment announced a work plan to incorporate three industrial sectors steel, cement and aluminum into the national carbon emission trading scheme (ETS).
The plan aims to bring 1,500 companies from these three high-emission industries into the trading program. Collectively, these industries emit approximately 3 billion tonnes of carbon dioxide annually, accounting for 20% of China’s total carbon dioxide emissions.
With this expansion, the ETS will cover a total of 8 billion tonnes of carbon dioxide, representing 60% of China’s total emissions, according to Pei Xiaofei, the ministry’s spokesperson, at a press conference on Wednesday.
Since its launch in July 2021, China’s carbon trading market- already the world’s largest- has included 2,200 coal-fired power generation enterprises. These power plants emit over 5 billion tonnes of carbon dioxide each year, making up 40% of the country’s total emissions.
Last September, the ministry released a draft plan for public consultation regarding the expansion, as Mysteel Global reported.
As of March 26, the total trading volume in China’s ETS had reached 635 million tonnes, with a cumulative transaction value of Yuan 43 billion ($6 billion), Mysteel Global learned from the latest data released by the Shanghai Environment and Energy Exchange.
Note: This article has been written in accordance with a content exchange agreement between MySteel Global and BigMint.
Leave a Reply