China Plans to Include Eight Industries in Carbon Trading MarketBloomberg News
China’s planned national carbon-trading program will cover eight industries when it starts up in 2017, the nation’s top economic planning agency said in a statement on Friday.
The petrochemical and power industries will be included, along with chemicals, construction material, nonferrous metals, steel, papermaking and aviation, the National Development and Reform Commission said.
The start of a national pollution-trading system is part of a larger push by China to cut global-warming emissions for its most polluting industries. The country has previously committed to bringing emissions to a peak around 2030. Additionally, the world’s most-populous nation has aggressively pushed solar and wind power development.
The nationwide carbon market will be developed using a cap-and-trade system, which provides a mechanism for the biggest corporate polluters to buy credits from those that don’t pollute as much. The idea is that the emissions-trading system prompts companies to cut their emissions so they can sell their unused allocations.
China already has seven pilot programs running around the country.
The market will cover companies in the eight industries with combined energy consumption of at least 10,000 metric tons of standard coal in any year between 2013 and 2015, it said.
The NDRC has asked China’s Civil Aviation Administration, industry associations and local authorities to report companies that can be included in the trading system by the end of February.
The agency said it will issue plans clarifying emission quotas later this year.
— With assistance by Feifei Shen