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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: China plans to expand its carbon emissions trading scheme (ETS) to include steel, cement, and aluminum sectors by the end of 2024
• This move is part of China’s efforts to meet its carbon peak by 2030 and carbon neutrality by 2060
🔭 The context: Since launching its ETS in 2021, China has only covered the power sector, but the inclusion of heavy industries will bring 60% of the nation’s emissions under the program
• The expansion comes as China faces pressure from the EU’s carbon tariffs, which penalize countries with weaker climate regulations
🌍 Why it matters for the planet: Extending the ETS to high-emission industries is critical for global decarbonization efforts, especially as China is the world’s largest carbon emitter
• Stronger climate policies in China will significantly impact global greenhouse gas reductions
⏭️ What's next: China will implement the ETS in two phases: familiarizing industries between 2024-2026, and tightening emissions quotas from 2027 onwards, reducing free allocations for businesses
💬 One quote: "Including these three additional sectors could bring the greenhouse gas covered by the exchange to around 60% of the country's total," said China’s Ministry of Ecology and Environment
📈 One stat: China’s ETS expansion will cover more emissions than the entire U.S. output
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