China expands carbon trading market to steel, cement, aluminum smelting sectors

BEIJING, March 26 (Xinhua) -- China on Wednesday released a work plan to expand its carbon trading market to include the steel, cement and aluminum smelting industries, in the market's first industrial expansion since its launch in 2021, according to the Ministry of Ecology and Environment.

China launched its carbon trading market in July 2021, with a focus on the power-generation sector. The carbon-emissions intensity in the generation of electricity has since decreased by 8.78 percent, the ministry said.

The expansion is expected to add 1,500 enterprises to the carbon trading market. The three added sectors release some 3 billion tonnes of carbon dioxide equivalent annually, accounting for over 20 percent of the country's total carbon dioxide emissions, according to the ministry.

Carbon trading, which allows the buying and selling of permits to emit carbon dioxide or other greenhouse gases, is regarded as a critical tool in reducing carbon footprints and meeting emissions targets.