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Designer of China Carbon Market Sees Expansion Being Delayed

  • Aluminum, cement sectors may be included in 2023, Zhang says
  • Market beset by low trading and accusation of data fabrication
An aluminum smelting facility in Zouping, China.

An aluminum smelting facility in Zouping, China.

Photographer: Brent Lewin/Bloomberg

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A researcher who helped design China’s national carbon market said it will expand into new sectors later than expected, a setback for a key tool in President Xi Jinping’s drive to cut the world’s biggest source of emissions.

Large aluminum and cement producers will likely be included in the market in 2023 instead of this year as planned, said Zhang Xiliang, director of Tsinghua University’s Institute of Energy, Environment and Economy. They would probably only begin trading in order to comply with their emissions allowances in 2024, he said.