China Expands Carbon Market to Include Steel, Aluminium, and Cement

China Adds Industries to Carbon Trading Scheme

On September 11, 2024, China announced plans to include steel, aluminium, and cement in its National Carbon Emission Trading Market (NCETM). This move follows a recent rise in nickel prices on the Shanghai Futures Exchange (SHFE).

Integration into the Carbon Market

The Ministry of Ecology and Environment revealed on September 9, 2024, that the integration of these industries into the NCETM is underway. The initiation phase will last from 2024 to 2026 to help companies adapt to the new regulations. This change will impact approximately 1,500 companies, each emitting more than 26,000 tons of CO2 equivalent annually.

Public Consultation

The ministry has released a draft for public comments titled “Work Plan for the National Carbon Emission Trading Market to Cover the Cement, Steel, and Electrolytic Aluminum Industries.” This draft includes:

Part 1: The work plan to incorporate the cement, steel, and aluminium industries into the carbon trading market.
Part 2: An explanation of the plan’s development process.

Nickel Prices on the Rise

Nickel prices have surged on the SHFE, with key contracts NI2409 and NI2410 increasing by up to 1.36%. Meanwhile, on the London Metal Exchange (LME), nickel prices rose by over 1% shortly after the opening, exceeding $16,000 per metric ton, marking a gain of more than 1.6% during the trading day.