China will expand its national carbon trading market this year to include three additional major carbon-emitting industries as the country accelerates efforts to curb greenhouse gas emissions, the Ministry of Ecology and Environment announced.
Launched in July 2021, China's carbon trading market is already the world's largest. It currently covers 2,200 coal-fired power generation companies that emit about 5 billion metric tons of carbon dioxide annually.
The expansion will add about 1,500 companies in the steel, cement and electrolytic aluminum sectors, ministry spokesman Pei Xiaofei said at a news conference.
Carbon trading allows designated emitters to buy and sell allowances to emit greenhouse gases. In the coal-fred power generation sector, for example, emission limits are set for each unit of electricity produced. After meeting the benchmark, operators can sell surplus carbon allowances. Those exceeding their limits must buy additional allowances.
With the expansion, China's national carbon market will cover more than 60 percent of the country's total carbon dioxide emissions.
Source: www.gov.cn
