China is expanding its national carbon trading system to include the steel and cement industries. The new rules will affect Russian exporters and affect the cost of products.
Chinese authorities have announced a significant expansion of their carbon regulation system. The next stage of development of the national carbon market will affect steel, aluminum and cement producers for the first time. Against the backdrop of this news, the price of quotas shows strong growth, reaching 66.86 yuan.
The Ministry of Ecology and Environment of the People’s Republic of China confirmed plans to gradually reduce the permitted volume of emissions. In the near future, enterprises from the chemical, petrochemical, pulp and paper and aviation industries will join the system. This approach corresponds to the global trend of tightening environmental requirements for industrial production.
Expanding the list of regulated industries brings the Chinese system closer to the European model of carbon regulation. However, experts note existing differences in calculation methods and control mechanisms. Achieving full compatibility will require time and additional approvals.
The new rules will have a direct impact on Russian manufacturers exporting their products to China. Tightening environmental requirements may change the conditions for market access and require additional investment in modernization of production facilities.
The introduction of carbon credits for heavy industry strengthens China’s position in the fight to reduce emissions. International companies should proactively adapt their business processes to new environmental standards.
The material was prepared with the support of the Russian Ministry of Education and Science as part of the Decade of Science and Technology.
Source: @dprom
photo: insights.made-in-china.com
