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.