China has announced its draft plan to expand the country’s carbon trading market by including cement as well as electrolytic aluminium and steel, seeking public feedback.

The draft plan is a significant step in expanding the world’s largest carbon trading market as it currently only covers coal-fired power generation. It would increase the market’s coverage to ~60 per cent of the country’s total carbon emissions.

The results of a comprehensive evaluation of seven sectors to assess their readiness for participation indicated that the three sectors are prepared to join the carbon trading market this year, according to the Ministry of Ecology and Environment.

Launched in July 2021, China’s carbon trading market has enabled the trade of ~465Mt of carbon emission allowances with a total value of nearly CNY27bn (US$3.79bn) as of mid-July, reported the ministry.