Climate Cooperation China
On behalf of the International Climate Initiative (IKI)

DCC of MEE Requests Industrial Sectors to Prepare for Inclusion in National ETS

Since May 2021, the Department of Climate Change (DCC) has consecutively requested the China Building Materials Federation (CBMF), the China Iron and Steel Association (CISA), the China Nonferrous Metals Industry Association (CNMIA) as well as the China Petroleum and Chemical Industry Federation (CPCIF) to support the preparatory work ahead of the sectors’ intended integration into the national ETS. The associations in question represent companies that produce cement, glass, iron, steel, nonferrous metals, petrochemicals, and chemicals. The trade associations will be carrying out work related to (1) allocation and benchmark calculation, (2) test operation of the supporting systems, (3) MRV, (4) serve as a link between companies and government, and (5) capacity-building.

A special emphasis was put on the producers of cement and electrolytic aluminum, as they are particularly well-positioned to be integrated soon. In fact, Prof. ZHANG Xiliang of Tsinghua University stated that this should ideally be achieved before the end of the year.

Read more (CN, CN, CN)

More policy news

China issues National Climate Plan for 2026–2030

On 27 July 2026, the Ministry of Ecology and Environment (MEE) and 18 other national authorities jointly issued the “National Climate Change Plan for the 15th Five-Year Plan Period”. The plan covers the period 2026–2030 and addresses mitigation, adaptation, carbon markets, product carbon footprints and climate governance.

The plan builds on the objectives of the general 15th Five-Year Plan (FYP) for National Economic and Social Development, adopted in March 2026, and of the State Council’s “Action Plan for Carbon Peaking during the 15th Five-Year Plan Period”, issued earlier this month. While the “Action Plan for Carbon Peaking” focuses mainly on energy and sectoral carbon dioxide (CO2) reductions, the new national climate plan also addresses non-CO2 gases, climate risk and the data systems needed to implement climate policy.

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China sets out how it intends to peak carbon emissions before 2030

On 9 July 2026, the State Council published the “Action Plan for Carbon Peaking during the 15th Five-Year Plan Period (2026–2030)”. The plan translates the climate objectives of the 15th Five-Year Plan, adopted in March 2026, into sector-level measures for energy, industry, transport, buildings and carbon markets. It is the central instrument through which China intends to reach its target of peaking carbon dioxide (CO2) emissions before 2030, and prepare the ground for carbon neutrality before 2060.

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