China is set to expand its national carbon trading scheme by the end of this year, bringing the steel, aluminum, and cement industries under its scope. This move, aimed at pushing high-polluting sectors to reduce emissions, has been anticipated by the market.
The announcement was made by China's Minister of Ecology and Environment, Huang Zhongqiu, during an industry conference. With the inclusion of these sectors, producers in the steel, aluminum, and cement industries will soon face additional costs related to carbon emissions. Authorities also hope this step will help mitigate the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM).
In July 2024, China updated its roadmap for carbon neutrality in the steel sector. The country is targeting a 40% reduction in carbon dioxide emissions from steel production by 2040, 85% by 2050, and 95% by 2060. The roadmap also outlines 51 technologies and six methods to achieve these reductions, with a focus on emissions trading, low-carbon steel production, and low-carbon finance.
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