BEIJING/SINGAPORE, Sept 9 (Askume) – China is seeking public feedback on a plan to include cement, steel and aluminium production in a carbon emissions trading scheme by the end of the year, the Ministry of Ecology and Environment said on Monday.
The ministry said the inclusion of the three additional sectors would bring greenhouse gas emissions covered by the agreement to about 60% of the country’s total emissions, more than the United States. Public inquiry.
China will expand the carbon emissions trading system in two phases, familiarizing participants with its procedures between 2024 and 2026, and improving the management and quality of emissions data while reducing quota allocations for companies from 2027.
The carbon allowance allows companies to emit a certain amount of carbon dioxide and will initially be allocated to the company for free. In the first stage, there will be no upper limit on the quota, and companies with larger emissions will receive larger quotas.
Beijing established the China Carbon Emissions Trading Exchange in July 2021 as part of an effort to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.
The EU’s impending carbon tariffs have put pressure on China to accelerate the decarbonisation of its heavy industrial sector.
The EU tariffs were introduced to address the problem of “carbon leakage” , which allows companies to avoid carbon costs by sourcing products from countries with weaker climate compliance.
Starting in 2026, importers of steel, fertiliser, cement and chemicals will have to pay a tax based on the carbon footprint of the products they buy.
