Ministry of Ecology and Environment: Carbon emission trading will cover major industries by 2027

On October 29th, the Ministry of Ecology and Environment held its regular press conference for October. Director Xia Yingxian of the Department of Climate Change stated that it will accelerate the construction of the national carbon market.

One is to expand the coverage of the national carbon emission trading market, which will basically cover the main emission industries in the industrial sector by 2027.

The second is to implement quota total control and paid distribution. We will gradually shift from intensity control to total control in accordance with the national greenhouse gas emission control targets and the requirements of dual control of carbon emissions. We will steadily promote a combination of free and paid carbon emission quota allocation methods, and orderly increase the proportion of paid allocation.

The third is to gradually tighten quotas. Strengthen the coordination between the national carbon emission trading market and industrial policies, enhance the scarcity of quotas, promote more accurate and comprehensive carbon prices that reflect China's emission reduction costs, and provide clearer price signals for optimizing the structure of key industries and promoting green and low-carbon transformation.

The fourth is to accelerate the construction of the voluntary emission reduction trading market. Establish a scientific and comprehensive methodology system, accelerate the development of methodology in key areas, and effectively serve the ecological value transformation of social independent emission reduction and the "Two Mountains" concept.

Fifth, we will strive to enhance the vitality of the national carbon market. Explore the development of green financial products and services related to carbon emission rights and voluntary emission reduction certification, gradually enrich the types and quantities of trading entities, and strengthen market trading supervision.