Cement to be added to Chinese Carbon Markets

By adding these three sectors, the emissions covered by the scheme could account for around 60% of the country’s total emissions, surpassing the emissions of the US. The proposal will be open for public scrutiny until 19 September.

China plans to expand the ETS in two phases. Between 2024 and 2026, participants will be introduced to the system, and from 2027, the Government will tighten management of emissions data, improve oversight, and reduce the allocation of free carbon allowances to businesses.

Initially, companies will receive carbon allowance quotas – permissions to emit a certain volume of carbon – at no cost. Firms with higher emissions will receive larger quotas, and during the first stage, there will be no cap on the upper limit of allowances.

China launched its national carbon trading market in July 2021 (China Carbon Emission Trading Exchange), as part of its commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. However, the market has so far only included the power sector.

Rising pressure from the European Union’s carbon tariffs has pushed China to speed up decarbonisation efforts in heavy industries. The EU’s tariffs, designed to address “carbon leakage”, aim to prevent companies from avoiding carbon costs by sourcing countries with weaker climate regulations. Beginning in 2026, importers of steel, fertiliser, cement, and chemicals will face levies based on the carbon emissions linked to the goods they produce.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/10092024/china-to-add-steel-cement-and-aluminium-to-carbon-markets-by-2024/