China's Ministry of Ecology and Environment (MEE) has released draft guidelines for carbon accounting and verification in the steel industry.
From NETEASE
China's Ministry of Ecology and Environment (MEE) has released draft guidelines for carbon accounting and verification in the steel industry. These include the Corporate Greenhouse Gas Emissions Accounting and Reporting Guidelines for the Steel Industry and the Technical Guidelines for Greenhouse Gas Emissions Verification for the Steel Industry. Combined with earlier guidelines for the cement and electrolytic aluminum industries, the three sectors are now fully prepared for inclusion in China's national carbon market.
"The Ministry of Ecology and Environment is working proactively to achieve the first expansion of China’s national carbon trading market," said Zhao Yingmin, Vice Minister of the MEE. He highlighted that the ministry conducts annual accounting and verification of carbon emissions across key industries, while developing allocation methods, reporting standards, and pathways for market expansion. Most of the necessary technical documents have been finalized, laying a solid foundation for the next phase of market growth.
Cement, Steel, and Aluminum to Join Carbon Market in 2024
In September 2023, the MEE unveiled the Work Plan for Including the Cement, Steel, and Electrolytic Aluminum Industries in the National Carbon Emission Trading Market. According to the draft plan, these industries will be incorporated into the market starting in 2024. Facilities with annual greenhouse gas emissions exceeding 26,000 metric tons of CO₂ equivalent will be included, adding approximately 1,500 new emitters and expanding the market's coverage by an estimated 3 billion tons of emissions annually.
This expansion is expected to invigorate market activity by increasing the number of participating sectors. Industry experts emphasize that the carbon market should remain a key policy tool for emissions reduction while leveraging its financial attributes to enhance market efficiency and innovation.
Strengthening the Market Framework
To support the market's growth, authorities plan to regulate carbon emission pledge financing, implement paid allocations of emission allowances, and introduce qualified financial institutions to trading activities. These measures aim to diversify market participants and solidify the carbon market’s role in achieving China's climate goals.