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China expands carbon trading system to steel, cement and aluminum sectors

China has announced an ambitious agenda to expand its carbon trading system to the steel, cement and aluminum smelting sectors as one.

China expands carbon trading system to steel, cement and aluminum sectors

The Ministry of Ecology and Environment announced that this expansion will cover more than 1,500 new enterprises, which will be able to receive credits to mobilize their CO₂ equivalent emissions.

The expansion will bring the total volume of carbohydrates under the trading system to 8 billion tons, covering more than 60% of China's total emissions, ministry report Pei Xiaofei stated on Wednesday.

China, one of the world's top exporters of commodities subject to the EU's Carbon Border Adjustment Mechanism (CBAM), is expected to export about 868.94 million tons of such commodities between 2026 and 2040, according to S&P Global Commodity Insights. China's iron and steel industries will account for 42% of these exports, cement 8% and aluminum 6%.

The carbon trading scheme manages about 5 billion tons of carbon emissions produced by 2,200 energy enterprises. This expansion allows China to halt its efforts to meet global carbon emissions.

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