China Broadens Carbon Market to Include Heavy Industries
China plans to expand its carbon trading market to include heavy industries like steel, cement, and aluminum smelting, requiring 1,500 more companies to buy emissions credits, thereby covering over 60% of the nation’s total CO2 emissions.
On Wednesday, China revealed its intention to expand its carbon trading market to encompass heavy industries, specifically targeting the steel, cement, and aluminum smelting sectors. This initiative is anticipated to mandate approximately 1,500 additional companies to purchase carbon credits to compensate for their emissions, as stated by the environment ministry.
The proposed expansion will extend the trading scheme to cover 8 billion metric tons of carbon dioxide emissions, which represents more than 60% of the nation’s total emissions. Currently, the existing system regulates about 5 billion metric tons of emissions produced by 2,200 power companies.
The expansion of China’s carbon market signals a significant step towards comprehensive emission management by incorporating major industrial sectors. By mandating additional companies to offset their emissions, China aims to enhance its efforts in combating climate change and reduce the overall carbon footprint of its industrial activities.
Original Source: www.tradingview.com
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