China’s carbon market to add heavy industries by year-end

China is set to expand its national carbon trading market by the end of 2024 to add steel, aluminium, and cement industries, according to Minister of Ecology and Environment Huang Runqiu.

Minister Runqiu announced the timeline at an industry conference at the weekend, according to a report in the China Securities Journal on Monday.

This move, expected by the market, will push these heavily polluting sectors to reduce emissions and mitigate the impact of the European Union’s new carbon tariff (CBAM), which will take effect in 2026.

Around 2,200 power utilities are currently part of China’s mandatory carbon market, but low carbon prices and taxes have slowed the pace of emission reductions.

The expansion of the market, launched three years ago, aligns with Beijing’s goal to include seven additional sectors and cover 70 per cent of the country’s total emissions by 2030.

Attribution: Bloomberg & China Securities Journal

Subediting: Y.Yasser