China’s Ministry of Ecology and Environment announced on March 26 the expansion of its national carbon emissions trading market to include the steel, cement, and aluminum smelting industries. 

Previously, the market covered only the power sector, with 2,200 key emitters accounting for over 5 billion tons of CO2 emissions annually. With this expansion, an additional 1,500 major emitters will be included, covering more than 60% of China’s total CO2 emissions. The market will also regulate other greenhouse gases, including carbon tetrafluoride. 

Since its launch in 2021, China’s carbon trading system has helped reduce emissions intensity in the power sector by 8.78%, lowering emission reduction costs by approximately CNY 35 billion.