The Multilateral Cooperation Center for Development Finance (MCDF)

In September 2024, China has issued several key policy documents to expand and gradually refine both its compliance carbon market and its voluntary emissions reduction mechanisms.  
The Work Plan for Expanding the National Carbon Emissions Trading Market to Include the Cement, Steel, and Electrolytic Aluminium Industries released by the Chinese Ministry of Ecology and Environment (MEE) at the beginning of September 2024 has garnered widespread attention. The draft that has been put up for public consultation proposes the inclusion of high-emission sectors such as cement, iron and steel, as well as electrolytic aluminium into the national carbon trading system (referred to as national ETS), starting already in 2024. This move will greatly expand the market’s coverage to around 8 Gts of CO2, which make up 60% of China’s total emissions, according to the MEE.

On August 11, 2024, the State Council published the “Opinion on Accelerating the Comprehensive Green Transition in Social and Economic Development”. This is the first time for the Chinese government to provide a systematic roadmap for the green transition, aiming to accelerate China’s shift towards a green economy.

To make a first assessment on the implementation of the National Strategy for Adaptation to Climate Change 2035, China’s Ministry of Ecology and the Environment (MEE) issued a progress report on China’s climate change adaptation on June 2, which systematically summarizes the achievements of China’s adaptation to climate change since 2022.